sec.115Penalties for late payment [ SM, s 165 ]

sec.115 Penalties for late payment [ SM, s 165 ]

The body corporate may, by ordinary resolution, fix a penalty to be paid by owners of lots if a contribution, or an instalment of a contribution, is not received by the body corporate by the date for payment fixed in notices of contribution given to the owners. The penalty must consist of simple interest at a stated rate, of not more than 2.5%, for each month the contribution or instalment is in arrears. Suppose that— a contribution of $400 is payable in 4 instalments of $100 and the body corporate has fixed a penalty interest rate of 2% per month; and an account requiring payment of an instalment of $100 by 31 March is given to an owner of a lot; and the instalment is not paid until 27 June. In this case, the instalment has been in arrears for 2 months and a penalty of $4 is payable. (sec.115-ssec.1) The body corporate may, by ordinary resolution, fix a penalty to be paid by owners of lots if a contribution, or an instalment of a contribution, is not received by the body corporate by the date for payment fixed in notices of contribution given to the owners. (sec.115-ssec.2) The penalty must consist of simple interest at a stated rate, of not more than 2.5%, for each month the contribution or instalment is in arrears. Suppose that— a contribution of $400 is payable in 4 instalments of $100 and the body corporate has fixed a penalty interest rate of 2% per month; and an account requiring payment of an instalment of $100 by 31 March is given to an owner of a lot; and the instalment is not paid until 27 June. In this case, the instalment has been in arrears for 2 months and a penalty of $4 is payable.

• 1 a contribution of $400 is payable in 4 instalments of $100 and the body corporate has fixed a penalty interest rate of 2% per month; and
• 2 an account requiring payment of an instalment of $100 by 31 March is given to an owner of a lot; and
• 3 the instalment is not paid until 27 June.