Strata Management Act 2013 · Updated to 8 Feb 2013 · Part V · Strata Management After Existence of
51. Developer to establish sinking fund account in the name of management corporation
Official textFrom Laws of Malaysia Online, unchanged
At the same time when the developer is required to open and maintain the maintenance account under subsection 50(1), the developer shall open and maintain a sinking fund account in the name of the management corporation, with a bank or financial institution, into which shall be deposited the contribution to the sinking fund paid by the proprietors.
maintenance account
“maintenance account” means an account required to be opened and maintained by a developer, joint management body, management corporation or subsidiary management corporation under section 10, 23, 50, 60 or 66, as the case may be;
The sinking fund account shall be used solely for the purposes of meeting the actual or expected capital expenditure necessary in respect of the following matters:
sinking fund account
“sinking fund account” means an account required to be opened and maintained by a developer, joint management body, management corporation or subsidiary management corporation under section 11, 24, 51, 61 or 67, as the case may be;
the painting or repainting any part of the common property which is a building or other structure;
the acquisition of any movable property for use in relation to the common property;
the renewal or replacement of any fixtures or fittings comprised in any common property and any movable property vested in the management corporation;
the upgrading and refurbishment of the common property;
and
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any other capital expenditure as the management corporation deems necessary.
Any developer who fails to comply with subsection (1) or
commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.
Terms defined in s 2
bank or financial institution
Defined · s 2“bank or financial institution” means a bank or financial institution licensed under the Banking and Financial Institutions Act 1989 or the Islamic Banking Act 1983, or regulated by the Central Bank under any written law;
maintenance account
Defined · s 2“maintenance account” means an account required to be opened and maintained by a developer, joint management body, management corporation or subsidiary management corporation under section 10, 23, 50, 60 or 66, as the case may be;
management corporation
Defined · s 2“management corporation” means the management corporation which comes into existence under the Strata Titles Act 1985;
sinking fund account
Defined · s 2“sinking fund account” means an account required to be opened and maintained by a developer, joint management body, management corporation or subsidiary management corporation under section 11, 24, 51, 61 or 67, as the case may be;
Chapter 6
Part VI
Part VII
Part VIII
Insurances
Part IX
Disputes and Strata Management Tribunal
Part X
Part XI