(1)  A body corporate must maintain a fund for the purpose of meeting its financial obligations under this Act.

(2)  All income must be paid into the fund and all expenditure must be made from the fund.

(3)  If the body corporate thinks fit, the fund may be subdivided into separate parts, one related to recurrent expenditure and the other related to capital expenditure.

(4)  The fund must be maintained at a level sufficient to meet reasonably foreseeable expenditure to be incurred by the body corporate.