(1) A body corporate may levy the contributions determined by it in accordance
with section 38A(1) and (2) and contributions referred to in section 38A(3)
and the amount (if any) determined pursuant to section 38A(4) in respect
thereof by serving on the proprietors notice in writing of the contributions
payable by them in respect of their respective lots.
(2) Contributions levied
under subsection (1) by a body corporate shall be levied in respect of each
lot and shall be payable, subject to this section, by the proprietors in
shares proportional to the lot entitlements of their respective lots.
(3) In
respect of a contribution levied under subsection (1) a proprietor of a lot
is, subject to section 40(4) , liable, jointly and severally with any person
who was liable to pay that contribution when that proprietor became the
proprietor of that lot, to pay such part of that contribution as was unpaid
when he or she became the proprietor of that lot.
(5) Without affecting the liability of a
proprietor of a lot in respect of a contribution levied under this section,
where a mortgagee is in possession (whether by himself, herself or any other
person) of a lot the mortgagee shall be liable jointly and severally with the
proprietor of the lot of which the mortgagee is in possession for a
contribution levied on that proprietor in accordance with this Act but shall
not be so liable in respect of a contribution, other than regular periodic
contributions to the administrative fund and sinking fund referred to in
section 38A (5) , unless notice in writing of the levy of the contribution has
been served on the mortgagee.
(5A) A notice of the levy of contributions to a
proprietor of a lot shall—
(a) if an amount has been determined pursuant to
section 38A(4) in respect of the contributions—state the amount of the
contribution attributable to that amount of discount; and
(b) state the date
when the contribution becomes due and payable; and
(c) be served or deemed to
be served on the proprietor before the date when the contributions become due
and payable.
(6) A contribution levied in respect of a lot under this
section—
(a) becomes due and payable to the body corporate in accordance
with the decision of the body corporate to make the levy; and
(b) if paid
within 30 days after the date when it becomes due and payable—shall be
reduced by that part of the contribution attributable to the amount determined
pursuant to section 38A(4) (if any); and
(c) must be paid to the
body corporate as a monetary amount;
and any part of a contribution
attributable to the amount determined pursuant to section 38A(4) so paid
shall form part of the fund to which the contribution upon which the amount
was determined belongs.
(7) Nothing in this section shall be construed to
prevent a body corporate, in general meeting or the committee, either
generally or in a particular case, determining that a contribution may be
reduced as provided in subsection (6) (b) notwithstanding that the
contribution is not paid as prescribed in that subsection.
(8) Despite
subsection (6) (c) , a contribution levied by a body corporate in relation to
a lot is taken to be paid in full or part if it is satisfied in full or part
by an offset arrangement between the body corporate and the proprietor of the
lot.
(9) Subsection (8) applies only if—
(a) the terms of the offset
arrangement were approved by resolution of the body corporate at a general
meeting before the arrangement was completed; and
(b) the fair value of land,
goods or services provided as an offset under the offset arrangement equals
the value of the contribution sought to be satisfied in full or part by the
offset arrangement.
(10) Neither the proprietor nor an associate of the
proprietor is entitled to vote on the motion for the resolution mentioned in
subsection (9) (a) .
