diff --git a/rm-server/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-group-context.xml b/rm-server/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-group-context.xml
index f1afccb48a..55e83c969c 100644
--- a/rm-server/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-group-context.xml
+++ b/rm-server/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-group-context.xml
@@ -19,11 +19,9 @@
       <property name="private" value="true"/>
       <property name="capabilities">
          <list>
-            <ref bean="rmDestroyRecordsScheduledForDestructionCapability"/>
-            <ref bean="rmDestroyRecordsCapability"/>
             <ref bean="rmDeleteRecordsCapability"/>
             <ref bean="rmCreateModifyDestroyFileplanMetadataCapability"/>
-            <ref bean="rmCreateModifyDestroyFoldersCapability"/>
+            <ref bean="rmDeleteRecordFolderCapability"/>
          </list>
       </property>
    </bean>
@@ -35,7 +33,7 @@
       <property name="private" value="true"/>
       <property name="capabilities">
          <list>
-            <ref bean="rmCreateModifyDestroyFoldersCapability"/>
+            <ref bean="rmModifyRecordFolderCapability"/>
             <ref bean="rmCreateModifyDestroyFileplanMetadataCapability"/>
             <ref bean="rmEditDeclaredRecordMetadataCapability"/>
             <ref bean="rmEditNonRecordMetadataCapability"/>
@@ -52,7 +50,7 @@
       <property name="private" value="true"/>
       <property name="capabilities">
          <list>
-            <ref bean="rmCreateModifyDestroyFoldersCapability"/>
+            <ref bean="rmModifyRecordFolderCapability"/>
             <ref bean="rmCreateModifyDestroyFileplanMetadataCapability"/>
             <ref bean="rmEditDeclaredRecordMetadataCapability"/>
             <ref bean="rmEditNonRecordMetadataCapability"/>
diff --git a/rm-server/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-recordfolder-context.xml b/rm-server/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-recordfolder-context.xml
index bbd0ea6863..997cd2a412 100644
--- a/rm-server/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-recordfolder-context.xml
+++ b/rm-server/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-recordfolder-context.xml
@@ -25,25 +25,21 @@
    </bean>
 
    <bean id="rmCreateModifyDestroyFoldersCapability"
-      parent="declarativeCapability">
+         parent="compositeCapability">
+      
       <property name="name" value="CreateModifyDestroyFolders"/>
       <property name="permission" value="CreateModifyDestroyFolders"/>
-      <property name="kinds">
+	       
+      <property name="capabilities">
          <list>
-            <value>RECORD_CATEGORY</value>
-            <value>RECORD_FOLDER</value>
+            <ref bean="rmCreateRecordFolderCapability"/>
+            <ref bean="rmModifyRecordFolderCapability"/>
+            <ref bean="rmDeleteRecordFolderCapability"/>
             <value>UNFILED_RECORD_CONTAINER</value>
             <value>UNFILED_RECORD_CONTAINER_CHILD</value>
          </list>
       </property>
-      <property name="conditions">
-         <map>
-            <entry key="capabilityCondition.filling" value="true"/>
-            <entry key="capabilityCondition.cutoff" value="false"/>
-            <entry key="capabilityCondition.frozen" value="false"/>
-            <entry key="capabilityCondition.closed" value="false"/>
-         </map>
-      </property>
+
       <property name="group"><ref bean="folderControlGroup"/></property>
       <property name="index" value="20" />
    </bean>
@@ -70,6 +66,63 @@
    </bean>
 
    <!--  Unassignable -->
+      
+   <bean id="rmCreateRecordFolderCapability"
+      parent="declarativeCapability">
+      <property name="name" value="CreateRecordFolder"/>
+      <property name="permission" value="CreateModifyDestroyFolders"/>
+      <property name="private" value="true"/>
+      <property name="kinds">
+         <list>
+            <value>RECORD_CATEGORY</value>
+         </list>
+      </property>
+      <property name="conditions">
+         <map>
+            <entry key="capabilityCondition.filling" value="true"/>
+         </map>
+      </property>
+   </bean>
+   
+   <bean id="rmModifyRecordFolderCapability"
+      parent="declarativeCapability">
+      <property name="name" value="ModifyRecordFolder"/>
+      <property name="private" value="true"/>
+      <property name="permission" value="CreateModifyDestroyFolders"/>
+      <property name="kinds">
+         <list>
+            <value>RECORD_FOLDER</value>
+         </list>
+      </property>
+      <property name="conditions">
+         <map>
+            <entry key="capabilityCondition.filling" value="true"/>
+            <entry key="capabilityCondition.cutoff" value="false"/>
+            <entry key="capabilityCondition.frozen" value="false"/>
+            <entry key="capabilityCondition.closed" value="false"/>
+         </map>
+      </property>
+   </bean>
+   
+   <bean id="rmDeleteRecordFolderCapability"
+         parent="declarativeCapability">
+      <property name="name" value="DeleteRecordFolder"/>
+      <property name="private" value="true"/>
+      <property name="permission" value="CreateModifyDestroyFolders"/>
+      <property name="kinds">
+         <list>
+            <value>RECORD_FOLDER</value>
+         </list>
+      </property>
+      <property name="conditions">
+         <map>
+            <entry key="capabilityCondition.filling" value="true"/>
+            <entry key="capabilityCondition.cutoff" value="false"/>
+            <entry key="capabilityCondition.frozen" value="false"/>
+            <entry key="capabilityCondition.closed" value="false"/>
+         </map>
+      </property>
+   </bean>
 
    <bean id="rmMoveRecordFolderCapability"
       parent="compositeCapability">
diff --git a/rm-server/config/alfresco/module/org_alfresco_module_rm/messages/capability-service.properties b/rm-server/config/alfresco/module/org_alfresco_module_rm/messages/capability-service.properties
index 52817f04cc..0900e8a80a 100644
--- a/rm-server/config/alfresco/module/org_alfresco_module_rm/messages/capability-service.properties
+++ b/rm-server/config/alfresco/module/org_alfresco_module_rm/messages/capability-service.properties
@@ -50,7 +50,7 @@ capability.UpdateTriggerDates.title=Update Trigger Dates
 capability.ManuallyChangeDispositionDates.title=Manually Change Disposition Dates
 capability.AuthorizeNominatedTransfers.title=Authorize Nominated Transfers
 capability.AuthorizeAllTransfers.title=Authorize All Transfers
-capability.DestroyRecordsScheduledForDestruction.title=Destroy Records Scheduled for Destruction
+capability.DestroyRecordsScheduledForDestruction.title=Destroy Record or Record Folder Scheduled for Destruction
 capability.DestroyRecords.title=Destroy Records
 capability.DeleteRecords.title=Delete Records
 capability.TriggerAnEvent.title=Trigger An Event
diff --git a/rm-server/source/java/org/alfresco/module/org_alfresco_module_rm/admin/RecordsManagementAdminServiceImpl.java b/rm-server/source/java/org/alfresco/module/org_alfresco_module_rm/admin/RecordsManagementAdminServiceImpl.java
index c2371f3cf9..0031b2ba85 100644
--- a/rm-server/source/java/org/alfresco/module/org_alfresco_module_rm/admin/RecordsManagementAdminServiceImpl.java
+++ b/rm-server/source/java/org/alfresco/module/org_alfresco_module_rm/admin/RecordsManagementAdminServiceImpl.java
@@ -1149,7 +1149,7 @@ public class RecordsManagementAdminServiceImpl implements RecordsManagementAdmin
 	/**
 	 * @see org.alfresco.module.org_alfresco_module_rm.admin.RecordsManagementAdminService#removeCustomReference(org.alfresco.service.cmr.repository.NodeRef, org.alfresco.service.cmr.repository.NodeRef, org.alfresco.service.namespace.QName)
 	 */
-	public void removeCustomReference(NodeRef fromNode, NodeRef toNode, QName assocId)
+	public void removeCustomReference(final NodeRef fromNode, final NodeRef toNode, final QName assocId)
 	{
 		Map<QName, AssociationDefinition> availableAssocs = this.getCustomReferenceDefinitions();
 
@@ -1166,14 +1166,23 @@ public class RecordsManagementAdminServiceImpl implements RecordsManagementAdmin
 		    // TODO:  Ask for a more efficient method such as
 		    //        nodeService.removeChildAssociation(fromNode, toNode, chRef.getTypeQName(), null);
 
-			List<ChildAssociationRef> children = nodeService.getChildAssocs(fromNode);
-			for (ChildAssociationRef chRef : children)
-			{
-				if (assocId.equals(chRef.getTypeQName()) && chRef.getChildRef().equals(toNode))
-				{
-					nodeService.removeChildAssociation(chRef);
-				}
-			}
+		    AuthenticationUtil.runAsSystem(new RunAsWork<Void>()
+		    {
+                @Override
+                public Void doWork() throws Exception
+                {
+                    List<ChildAssociationRef> children = nodeService.getChildAssocs(fromNode);
+                    for (ChildAssociationRef chRef : children)
+                    {
+                        if (assocId.equals(chRef.getTypeQName()) && chRef.getChildRef().equals(toNode))
+                        {
+                            nodeService.removeChildAssociation(chRef);
+                        }
+                    }
+                    
+                    return null;
+                }
+            });
 		}
 		else
 		{