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Simple English definitions for legal terms
assessment fund
Read a random definition: residuum rule
A quick definition of assessment fund:
Assessment Fund: The money left over after expenses are paid from the fees collected by a mutual-benefit association. This money is used to pay out benefits to members of the association.
A more thorough explanation:
An assessment fund is the remaining balance of the assessments collected by a mutual-benefit association after deducting expenses. This fund is used to pay the beneficiaries of the association.
For example, if a mutual-benefit association collects $100,000 in assessments and incurs $20,000 in expenses, the assessment fund would be $80,000. This fund would be used to pay the beneficiaries of the association.
The assessment fund is an important aspect of mutual-benefit associations as it ensures that there is enough money to pay the beneficiaries when needed. It also helps to keep the association financially stable.