New South Wales Consolidated Acts

STRATA SCHEMES MANAGEMENT ACT 1996 - SECT 71

71 What money can be paid out of the sinking fund?

(1) An owners corporation must not pay any money from its sinking fund except for the purpose of:

(a) payments of the kind for which estimates have been made under section 75 (2), or

(b) payments made in accordance with this Division on a distribution of a surplus in the fund.

(2) However, an owners corporation may disburse money by transfer from its sinking fund to its administrative fund or by meeting from its sinking fund expenditure that should have been met from its administrative fund if the owners corporation complies with subsection (3).

(3) The owners corporation must, not later than 3 months after the disbursement, make a determination under section 76 (1) of an amount sufficient to recoup the amount of the disbursement.