New South Wales Consolidated Acts

RETIREMENT VILLAGES ACT 1999 - SECT 120C

120C Making good of deficit

(1) A deficit is to be made good by the operator of the retirement village.

(2) Except as provided by the regulations referred to in subsection (3), an operator of a retirement village must not:

(a) carry forward a deficit to a subsequent financial year, or

(b) request or receive from the residents of the retirement village any special additional payments for the purpose of making good a deficit, or

(c) increase or purport to increase recurrent charges payable by the residents of a retirement village in any financial year for the purpose of making good a deficit, or

(d) use the whole or any part of the recurrent charges collected by the operator in a financial year to make good a deficit, or

(e) use the whole or any part of the capital works fund for the retirement village to make good a deficit.

(3) The regulations may prescribe circumstances in which the operator of a retirement village may:

(a) increase the recurrent charges payable by the residents of a retirement village for the purpose of making good a deficit, or

(b) use the whole or any part of the recurrent charges collected by the operator for the purpose of making good a deficit, or

(c) carry forward a deficit to a subsequent financial year.

(4) The operator of a retirement village must not charge the residents of a retirement village interest in respect of a deficit.