diff --git a/source/java/org/alfresco/repo/rule/RuleLinkTest.java b/source/java/org/alfresco/repo/rule/RuleLinkTest.java
index f902152acc..dee8924938 100644
--- a/source/java/org/alfresco/repo/rule/RuleLinkTest.java
+++ b/source/java/org/alfresco/repo/rule/RuleLinkTest.java
@@ -1,5 +1,5 @@
 /*
- * Copyright (C) 2005-2010 Alfresco Software Limited.
+ * Copyright (C) 2005-2012 Alfresco Software Limited.
  *
  * This file is part of Alfresco
  *
@@ -259,6 +259,43 @@ public class RuleLinkTest extends BaseSpringTest
         assertEquals(2, rules.size());
     }
     
+    /**
+     * ALF-11923
+     * @since Odin
+     * @author Neil Mc Erlean.
+     */
+    public void testDeleteFolderWithRulesLinkedTo()
+    {
+        // Setup test data
+        Rule rule = createTestRule(false, "luke");
+        this.ruleService.saveRule(folderOne, rule);
+        
+        link(folderOne, folderTwo);
+        link(folderOne, folderThree);
+        
+        List<Rule> rules1 = ruleService.getRules(folderOne);
+        assertNotNull(rules1);
+        assertFalse(rules1.isEmpty());
+        assertEquals(1, rules1.size());
+        
+        List<Rule> rules2 = ruleService.getRules(folderTwo);
+        assertEquals(rules1, rules2);
+        
+        List<Rule> rules3 = ruleService.getRules(folderThree);
+        assertEquals(rules1, rules3);
+        
+        // Now delete folder 1.
+        nodeService.deleteNode(folderOne);
+        rules2 = ruleService.getRules(folderTwo);
+        rules3 = ruleService.getRules(folderThree);
+        
+        assertTrue(rules2.isEmpty());
+        assertFalse(nodeService.hasAspect(folderTwo, RuleModel.ASPECT_RULES));
+        
+        assertTrue(rules3.isEmpty());
+        assertFalse(nodeService.hasAspect(folderThree, RuleModel.ASPECT_RULES));
+    }
+    
     protected Rule createTestRule(boolean isAppliedToChildren, String title)
     {
         // Rule properties
diff --git a/source/java/org/alfresco/repo/rule/RulesAspect.java b/source/java/org/alfresco/repo/rule/RulesAspect.java
index 88cc458b76..b32701168c 100644
--- a/source/java/org/alfresco/repo/rule/RulesAspect.java
+++ b/source/java/org/alfresco/repo/rule/RulesAspect.java
@@ -18,6 +18,7 @@
  */
 package org.alfresco.repo.rule;
 
+import java.util.List;
 import java.util.Map;
 
 import org.alfresco.model.ContentModel;
@@ -25,6 +26,7 @@ import org.alfresco.repo.copy.CopyBehaviourCallback;
 import org.alfresco.repo.copy.CopyDetails;
 import org.alfresco.repo.copy.CopyServicePolicies;
 import org.alfresco.repo.copy.DefaultCopyBehaviourCallback;
+import org.alfresco.repo.node.NodeServicePolicies;
 import org.alfresco.repo.policy.BehaviourFilter;
 import org.alfresco.repo.policy.JavaBehaviour;
 import org.alfresco.repo.policy.PolicyComponent;
@@ -45,7 +47,9 @@ import org.apache.commons.logging.LogFactory;
  */
 public class RulesAspect implements
                  CopyServicePolicies.OnCopyNodePolicy,
-                 CopyServicePolicies.OnCopyCompletePolicy
+                 CopyServicePolicies.OnCopyCompletePolicy,
+                 NodeServicePolicies.OnAddAspectPolicy,
+                 NodeServicePolicies.BeforeDeleteNodePolicy
 {
     private PolicyComponent policyComponent;
     private BehaviourFilter behaviourFilter;
@@ -93,6 +97,10 @@ public class RulesAspect implements
                 QName.createQName(NamespaceService.ALFRESCO_URI, "onAddAspect"), 
                 RuleModel.ASPECT_RULES, 
                 new JavaBehaviour(this, "onAddAspect"));
+        this.policyComponent.bindClassBehaviour(
+                QName.createQName(NamespaceService.ALFRESCO_URI, "beforeDeleteNode"), 
+                RuleModel.ASPECT_RULES, 
+                new JavaBehaviour(this, "beforeDeleteNode"));
     }
     
     /**
@@ -123,6 +131,39 @@ public class RulesAspect implements
         }
     }
     
+    /**
+     * @since Odin
+     * @author Neil Mc Erlean
+     */
+    @Override public void beforeDeleteNode(NodeRef nodeRef)
+    {
+        this.ruleService.disableRules(nodeRef);
+        
+        // The rule folder & below will be deleted automatically in the normal way, so we don't
+        // need to worry about them.
+        // But we need additional handling for any other folders which have rules linked to this folder's rules. See ALF-11923.
+        List<ChildAssociationRef> children = nodeService.getChildAssocs(nodeRef, RuleModel.ASSOC_RULE_FOLDER, RuleModel.ASSOC_RULE_FOLDER);
+        if ( !children.isEmpty())
+        {
+            final ChildAssociationRef primaryRulesFolderAssoc = children.get(0);
+            NodeRef rulesSystemFolder = primaryRulesFolderAssoc.getChildRef();
+            
+            List<ChildAssociationRef> foldersLinkedToThisRuleFolder = nodeService.getParentAssocs(rulesSystemFolder, RuleModel.ASSOC_RULE_FOLDER, RuleModel.ASSOC_RULE_FOLDER);
+            
+            for (ChildAssociationRef linkedFolder : foldersLinkedToThisRuleFolder)
+            {
+                // But don't delete the primary child-assoc, which is done automatically
+                if ( !linkedFolder.getParentRef().equals(primaryRulesFolderAssoc.getParentRef()))
+                {
+                    // Remove the aspect that marks the other folder has having rules (linked ones)
+                    nodeService.removeAspect(linkedFolder.getParentRef(), RuleModel.ASPECT_RULES);
+                    // And remove the child-assoc to the rules folder.
+                    nodeService.removeSecondaryChildAssociation(linkedFolder);
+                }
+            }
+        }
+    }
+    
     /**
      * @return              Returns {@link RulesAspectCopyBehaviourCallback}
      */