Unit Titles Regulations 2011

Financial management

29 Operating account

(1)

This regulation applies to a body corporate that has not established an optional contingency fund under section 118 of the Act.

(2)

A body corporate to which this regulation applies may meet an unbudgeted expense out of its operating account provided that,—

(a)

after paying the unbudgeted expense out of the operating account, the body corporate will be able to continue to pay its debts as they become due in the normal course of operation; and

(b)

the amount required to meet the expense is less than 10% of the amount determined by the body corporate to be raised for the operating account under section 121 of the Act in that financial year.