RETAIL SHOP LEASES ACT 1994 - SECT 40
Sinking fund for major maintenance and repairs
RETAIL SHOP LEASES ACT 1994 - SECT 40
Sinking fund for major maintenance and repairs
40 Sinking fund for major maintenance and repairs
(1) This section applies if a lessee under a retail shop lease is required to
pay amounts (
"maintenance amounts" ) into a sinking fund for major maintenance of, or
repairs to—
(a) the buildings, plant and equipment of, and areas used in
association with, the retail shopping centre in which the leased shop is
situated; or
(b) the building in which the leased shop is situated and the
plant and equipment of, and areas used in association with, the building; or
(c) the leased shop and the plant and equipment of, and areas used in
association with, the leased shop.
(2) The lessor may keep only 1 sinking
fund for the purposes mentioned in subsection (1) .
(3) The lessor must pay
maintenance amounts paid by the lessee for the credit of the sinking fund into
an interest bearing account kept by the lessor.
(4) The lessor must only
apply amounts standing to the credit of the sinking fund and interest earned
on the fund for a purpose mentioned in subsection (1) .
(5) The lessor is
liable to pay into the sinking fund any deficiency attributable to a failure
by the lessor or any predecessor in title of the lessor to comply with
subsection (4) .
(6) The total payments into the sinking fund by all lessees
of the retail shops to which the fund relates for any year must not be more
than 5% of the total of the lessor’s estimated outgoings for the
retail shops for the year.
(7) The lessor must not seek or accept payments of
maintenance amounts from a lessee of a retail shop that would result in the
amount standing to the credit of the sinking fund being more than $100,000.
