can we use sinking fund INTEREST for maintenance charges?in a cooperative housing society?
Suggestions:
if your planning on selling it in the next few years and you drop 40% into maintenance in one year and 10% all other years that wont look good on the paper work………….. for many lawyers that live to find flaws that will blow up on you in the worst way, unless you plan on unloading this property on someone who trusts you or is naive
No. The accumulated sinking fund should be covered by long term fixed Deposits with the State or District Cooperative Banks only. The interest accrued on the FDs should be credited to Sinking Fund account every year. Sinking fund cnnot be used for routine repair and maintenance or in any other manner,as u have asked, in lieu of maintenance charges. The money can only be used for major repairs. You should apply to the Registrar of Co operative Societies of ur area with details and obtain his permission for using the amount. A resolution should be passed in a General Body meeting for making the application. Refer to Maharashtrra State Cooperative Societies Act and the model Bye laws of the Govt. of Maharashtra for details
if your planning on selling it in the next few years and you drop 40% into maintenance in one year and 10% all other years that wont look good on the paper work………….. for many lawyers that live to find flaws that will blow up on you in the worst way, unless you plan on unloading this property on someone who trusts you or is naive
No. The accumulated sinking fund should be covered by long term fixed Deposits with the State or District Cooperative Banks only. The interest accrued on the FDs should be credited to Sinking Fund account every year. Sinking fund cnnot be used for routine repair and maintenance or in any other manner,as u have asked, in lieu of maintenance charges. The money can only be used for major repairs. You should apply to the Registrar of Co operative Societies of ur area with details and obtain his permission for using the amount. A resolution should be passed in a General Body meeting for making the application. Refer to Maharashtrra State Cooperative Societies Act and the model Bye laws of the Govt. of Maharashtra for details