Legal Definitions - assessment fund

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.