New South Wales Consolidated Acts

COMMUNITY LAND MANAGEMENT ACT 2021 - SECT 81

81 Distribution of surplus money in administrative fund or capital works fund

(1) An association may, in accordance with a unanimous resolution, distribute between its members money in its administrative fund or capital works fund that is not, in the opinion of the association, required for the purposes of either fund.

(2) A distribution to a member by a community association or precinct association must be made in the same proportion that the following unit entitlements for the community scheme or precinct scheme bear to the total unit entitlement for the scheme--

(a) the unit entitlement for the development lot, if the member is the owner of the development lot,

(b) the unit entitlement for the applicable former development lot, if the member is a subsidiary body of the association.

(3) A distribution to a member of a neighbourhood association or strata scheme who is the owner of a lot in the scheme must be made in the same proportion that the unit entitlement of the lot bears to the total unit entitlement of the neighbourhood scheme or strata scheme.

(4) Money distributed under this section in relation to a lot that is subject to a mortgage or covenant charge shown on the association 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 under this section.

(5) The Tribunal may, on application by an association, an owner of a lot that is subject to a mortgage or covenant charge, or the mortgagee or covenant chargee concerned, make an order as to the payment of money under subsection (4).

(6) An application under this section is to be made to, and determined by, the Supreme Court (and not the Tribunal) if--

(a) the title to land is in question otherwise than incidentally, or

(b) the matter is incidental to other proceedings being dealt with by the Court.