#20437
Jimmy-T
Keymaster

    @daphne diaphanous said:
    We are having problems with regular transfers from our sinking fund to cover admin fund shortfalls without ever replacing them. Does anyone have any experience of this?

     

    While the continuous re-lending of a sum may seem like a way of siphoning money out of sinking funds, it may just be a one-off readjustment when the Sinking Funds have more than enough money but the cash-flow in the admin fund is a bit thin. The money is ‘lent’, paid bank, then lent again.

    However if the initial sum isn’t paid back within the specified period (90 days??) and more money is withdrawn, this is a breach and can be pursued through orders from the CTTT.

    Obviously, the long-term answer is to shift the distribution of levies income from the sinking fund to the admin fund until the correct balance is restored.

     

    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.