Division 1 Administrative and sinking funds and account of owners corporation
66 Administrative fund to be established
An owners corporation must establish an administrative fund.
67 What money is to be paid into the administrative fund?
(1) An owners corporation must pay the following amounts into the administrative fund:(a) the contributions levied on, and paid by, owners for payment into the fund,(b) the proceeds of the disposal of any personal property of the owners corporation,(c) any fees paid to the owners corporation for inspection of its records and the provision of information and certificates relating to its records.(2) An owners corporation may pay into the administrative fund any amounts paid to the owners corporation by way of discharge of insurance claims.
68 What money can be paid out of the administrative fund?
(1) An owners corporation must not pay any money from its administrative fund except for the purpose of:(a) payments of the kind for which estimates have been made under section 75 (1), or(b) payments made in accordance with this Division on a distribution of a surplus in the fund, or(c) payments to a member of the executive committee in accordance with this Act, or(d) other payments in connection with carrying out its functions under this Act or the by-laws, except payments of a kind referred to in section 71 (1).(2) However, an owners corporation may pay money by transfer from its administrative fund to its sinking fund or by meeting from its administrative fund expenditure that should have been met from its sinking fund so long as 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.
69 Sinking fund to be established
(1) An owners corporation must establish a sinking fund.(2) However, an owners corporation for a strata scheme comprising 2 lots need not establish a sinking fund if:(a) the owners corporation so determines by unanimous resolution, and(b) the buildings comprised in one of those lots are physically detached from the buildings comprised in the other lot, and(c) no building or part of a building in the strata scheme is situated outside those lots.
70 What money is to be paid into the sinking fund?
An owners corporation must pay the following amounts into its sinking fund:(a) the contributions levied on, and paid by, owners for payment into the fund,(b) any amounts paid to the owners corporation by way of discharge of insurance claims, unless those amounts have been paid into the administrative fund,(c) any amount received by the owners corporation that is not required or permitted to be paid into the administrative fund.
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.
72 Distribution of surplus money in administrative fund or sinking fund
(1) An owners corporation may, in accordance with a unanimous resolution, distribute between the owners any money in its administrative fund or sinking fund that is not, in the opinion of the owners corporation, required for the purposes of either fund.(2) A distribution to an owner of a lot or a person entitled to receive it under subsection (3) must be made in the same proportion as is borne by the unit entitlement for the lot to the aggregate unit entitlement.(3) Any money payable under subsection (1) in relation to a lot that is subject to a mortgage or covenant charge shown on the strata roll is to be paid:(a) in accordance with the joint directions of the owner of the lot and the mortgagee or covenant chargee, or(b) if they cannot agree—in accordance with an order of the court that, under subsection (4), has jurisdiction in the matter.(4) An application for an order to resolve a dispute under subsection (3) may be made:(a) in the case of a dispute where the amount of the payment does not exceed $500 and the title to land is not in question or is in question only incidentally—to the Local Court, or(b) in the case of an application where the amount of payment does not exceed $500 and the title to land is in question otherwise than incidentally—to the District Court of New South Wales, or(c) in the case of an application where the amount of the payment exceeds $500 but does not exceed $10,000 and the title to land is not in question or is in question only incidentally—to the District Court of New South Wales, or(d) in any other case—to the Supreme Court.
73 Can money in administrative fund or sinking fund be invested?
(1) An owners corporation may invest any money in its administrative fund or sinking fund in any manner permitted by law for the investment of trust funds or in any prescribed investment.(2) Any interest received on an investment made under this section forms part of the fund to which the investment belongs.
74 Account of owners corporation
(1) An owners corporation must pay any amounts that are received by it and are not otherwise invested in accordance with this Act into an account established in a financial institution in the name of the owners corporation.(2) This section does not apply to an owners corporation that has appointed a strata managing agent to whom the duty of the owners corporation under this section is delegated in accordance with this Act.