Explanatory Notes

Commonhold and Leasehold Reform Act 2002

2002 CHAPTER 15

1st May 2002

Commentary on the Sections: Part 1

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.