12 Owner Developer To Establish Contingency Reserve Fund

12 (1) At the time of the first conveyance of a strata lot to a purchaser, the owner developer must establish a contingency reserve fund by paying into the fund an amount calculated according to this section.

• (2) If the first conveyance of a strata lot to a purchaser occurs no later than one year after the deposit of the strata plan, the minimum contribution to the fund must be 5% of the estimated operating expenses as set out in the interim budget referred to in section 13.
• (3) If the first conveyance of a strata lot to a purchaser occurs later than one year after the deposit of the strata plan, the minimum contribution to the fund must be the lesser of

• (a) 5% of the estimated annual operating expenses as set out in the interim budget referred to in section 13 multiplied by the number of years or partial years since the deposit of the strata plan, and
• (b) 25% of the estimated annual operating expenses as set out in the interim budget referred to in section 13.

• (4) The owner developer must not use money in the contingency reserve fund to pay strata corporation expenses.
• (5) The contingency reserve fund belongs to the strata corporation.

1998-43-12, effective July 1, 2000 (B.C. Reg. 43/2000).