diff --git a/rm-community/rm-community-repo/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-condition-context.xml b/rm-community/rm-community-repo/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-condition-context.xml
index 408cbbf617..d5509295c4 100644
--- a/rm-community/rm-community-repo/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-condition-context.xml
+++ b/rm-community/rm-community-repo/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-condition-context.xml
@@ -60,6 +60,11 @@
           class="org.alfresco.module.org_alfresco_module_rm.capability.declarative.condition.TransferredCapabilityCondition">
     </bean>
 
+    <bean id="capabilityCondition.movable"
+          parent="capabilityCondition.base"
+          class="org.alfresco.module.org_alfresco_module_rm.capability.declarative.condition.MovableCapabilityCondition">
+    </bean>
+
     <bean id="capabilityCondition.destroyed"
           parent="capabilityCondition.base"
           class="org.alfresco.module.org_alfresco_module_rm.capability.declarative.condition.DestroyedCapabilityCondition">
@@ -218,7 +223,7 @@
       <property name="includedInHold" value="true"/>
       <property name="holdService" ref="HoldService" />
    </bean>
-   
+
    <bean id="capabilityCondition.hasFillingOnHoldContainer"
          parent="capabilityCondition.base"
          class="org.alfresco.module.org_alfresco_module_rm.capability.declarative.condition.FillingOnHoldContainerCapabilityCondition">
diff --git a/rm-community/rm-community-repo/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-recordfolder-context.xml b/rm-community/rm-community-repo/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-recordfolder-context.xml
index dbb0c48acb..dc42dd25f2 100644
--- a/rm-community/rm-community-repo/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-recordfolder-context.xml
+++ b/rm-community/rm-community-repo/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-recordfolder-context.xml
@@ -129,8 +129,7 @@
       </property>
       <property name="conditions">
          <map>
-            <entry key="capabilityCondition.cutoff" value="false"/>
-            <entry key="capabilityCondition.closed" value="false"/>
+            <entry key="capabilityCondition.movable" value="true"/>
          </map>
       </property>
       <property name="targetCapability" ref="rmCreateRecordFolderCapability"/>
diff --git a/rm-community/rm-community-repo/source/java/org/alfresco/module/org_alfresco_module_rm/capability/declarative/condition/MovableCapabilityCondition.java b/rm-community/rm-community-repo/source/java/org/alfresco/module/org_alfresco_module_rm/capability/declarative/condition/MovableCapabilityCondition.java
new file mode 100644
index 0000000000..99aebc7f29
--- /dev/null
+++ b/rm-community/rm-community-repo/source/java/org/alfresco/module/org_alfresco_module_rm/capability/declarative/condition/MovableCapabilityCondition.java
@@ -0,0 +1,52 @@
+/*
+ * #%L
+ * Alfresco Records Management Module
+ * %%
+ * Copyright (C) 2005 - 2016 Alfresco Software Limited
+ * %%
+ * This file is part of the Alfresco software.
+ * -
+ * If the software was purchased under a paid Alfresco license, the terms of
+ * the paid license agreement will prevail.  Otherwise, the software is
+ * provided under the following open source license terms:
+ * -
+ * Alfresco is free software: you can redistribute it and/or modify
+ * it under the terms of the GNU Lesser General Public License as published by
+ * the Free Software Foundation, either version 3 of the License, or
+ * (at your option) any later version.
+ * -
+ * Alfresco is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+ * GNU Lesser General Public License for more details.
+ * -
+ * You should have received a copy of the GNU Lesser General Public License
+ * along with Alfresco. If not, see <http://www.gnu.org/licenses/>.
+ * #L%
+ */
+package org.alfresco.module.org_alfresco_module_rm.capability.declarative.condition;
+
+import org.alfresco.module.org_alfresco_module_rm.capability.declarative.AbstractCapabilityCondition;
+import org.alfresco.service.cmr.repository.NodeRef;
+
+/**
+ * Movable capability condition.
+ *
+ * @author Roxana Dina
+ * @since 2.4.1
+ *
+ */
+public class MovableCapabilityCondition extends AbstractCapabilityCondition
+{
+
+    /**
+     * A record folder should not be moved when it is cut off, but it should be possible to move it when it is destroyed.
+     */
+    @Override
+    public boolean evaluateImpl(NodeRef nodeRef)
+    {
+        if (nodeService.hasAspect(nodeRef, ASPECT_GHOSTED) && dispositionService.isDisposableItemCutoff(nodeRef))
+            return true;
+        return !dispositionService.isDisposableItemCutoff(nodeRef);
+    }
+}