Commonhold and Leasehold Reform Act 2002 Explanatory Notes

Termination: miscellaneous

Section 56: Release of reserve fund

110.Section 39(4) protects reserve funds from creditors whilst the commonhold association is a going concern, but once the association has decided to wind itself up voluntarily or is wound up by the court on the petition of a creditor or the court orders that the land should no longer be commonhold land (see section 55) that protection is lifted.

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