Queensland Consolidated Acts

BUILDING UNITS AND GROUP TITLES ACT 1980 - SECT 38

38 Administrative fund and sinking fund

(1) A body corporate shall establish and maintain a fund as its administrative fund.

(2) A body corporate shall pay the following amounts into its administrative fund—

(a) all moneys received by it in respect of contributions determined pursuant to section 38A (1) ;

(b) the proceeds of the sale or other disposal of any personal property of the body corporate;

(c) any fees received by the body corporate under section 40 ;

(d) any amounts paid to the body corporate by way of discharge of insurance claims;

(e) interest received on any investments belonging to the administrative fund.

(3) A body corporate shall not disburse any moneys from its administrative fund otherwise that for the purpose of—

(a) meeting its liabilities referred to in section 38A (1) ; or

(b) carrying out its powers, authorities, duties or functions under this Act.

(4) A body corporate shall establish and maintain a fund as its sinking fund.

(5) A body corporate shall pay the following amounts into its sinking fund—

(a) all moneys received by it in respect of contributions determined pursuant to section 38A (2) ;

(b) any amounts paid to the body corporate by way of discharge of insurance claims and not paid to its administrative fund;

(c) all other amounts received by the body corporate and not paid or payable into the administrative fund;

(d) interest received on any investments belonging to the sinking fund.

(6) A body corporate shall not disburse any moneys from its sinking fund otherwise than for the purpose of—

(a) meeting its liabilities referred to in section 38A (2) ; or

(b) carrying out its powers, authorities, duties or functions under this Act.

(7) A body corporate may only invest any moneys in its administrative fund or its sinking fund in any manner permitted by law for the investment of trust funds or in any prescribed investment.

(8) A body corporate shall pay any moneys in its administrative fund or its sinking fund that are not otherwise invested in accordance with subsection (7) into an account established with a financial institution in the name of the body corporate.