sec.116Payment and recovery of body corporate debts [ SM, s 166 ]

sec.116 Payment and recovery of body corporate debts [ SM, s 166 ]

If a contribution or an instalment of a contribution is not paid by the date for payment, the body corporate may recover each of the following amounts as a debt— the amount of the contribution or instalment; any penalty for not paying the contribution or instalment; any costs ( recovery costs ) reasonably incurred by the body corporate in recovering the amount. If the amount of a contribution or an instalment of a contribution has been outstanding for 2 years, the body corporate must, within 2 months after the end of the 2-year period, start proceedings to recover the amount. A liability to pay a body corporate debt in relation to a lot is enforceable jointly and severally against each of the following persons— a person who was the owner of the lot when the debt became payable; a person, including a mortgagee in possession, who becomes an owner of the lot before the debt is paid. If there are 2 or more co-owners of a lot, the co-owners are jointly and severally liable to pay a body corporate debt in relation to the lot. If an owner is liable for a contribution or an instalment of a contribution, and a penalty, an amount paid by the owner must be paid— first, towards the penalty; and second, in reduction of the outstanding contribution or instalment; and third, towards any recovery costs for the debt. If the body corporate is satisfied there are special reasons for allowing a discount of a contribution, or waiving a penalty or liability for recovery costs, the body corporate may allow the discount, or waive the penalty or costs in whole or part. (sec.116-ssec.1) If a contribution or an instalment of a contribution is not paid by the date for payment, the body corporate may recover each of the following amounts as a debt— the amount of the contribution or instalment; any penalty for not paying the contribution or instalment; any costs ( recovery costs ) reasonably incurred by the body corporate in recovering the amount. (sec.116-ssec.2) If the amount of a contribution or an instalment of a contribution has been outstanding for 2 years, the body corporate must, within 2 months after the end of the 2-year period, start proceedings to recover the amount. (sec.116-ssec.3) A liability to pay a body corporate debt in relation to a lot is enforceable jointly and severally against each of the following persons— a person who was the owner of the lot when the debt became payable; a person, including a mortgagee in possession, who becomes an owner of the lot before the debt is paid. (sec.116-ssec.4) If there are 2 or more co-owners of a lot, the co-owners are jointly and severally liable to pay a body corporate debt in relation to the lot. (sec.116-ssec.5) If an owner is liable for a contribution or an instalment of a contribution, and a penalty, an amount paid by the owner must be paid— first, towards the penalty; and second, in reduction of the outstanding contribution or instalment; and third, towards any recovery costs for the debt. (sec.116-ssec.6) If the body corporate is satisfied there are special reasons for allowing a discount of a contribution, or waiving a penalty or liability for recovery costs, the body corporate may allow the discount, or waive the penalty or costs in whole or part.