(1) This section applies if—
(a) an owner of a lot included in a specified two-lot scheme (the defaulting owner) does not pay a contribution by a date for payment—
(i) fixed in a way mentioned in section 25(1); or
(ii) stated in a contribution notice given under section 26(2); and
(b) the owner of the other lot included in the scheme (the contributing owner) pays the contributing owner's contribution by the date for payment.
(2) The contributing owner may—
(a) pay, on behalf of the defaulting owner, the defaulting owner's contribution or any penalty for not paying the contribution by the date for payment; and
(b) recover each of the following amounts as a debt from the defaulting owner—
(i) the amount of the defaulting owner's contribution;
(ii) any penalty for not paying the contribution by the date for payment;
(iii) any costs reasonably incurred by the contributing owner in recovering an amount mentioned in subparagraph (i) or (ii).
(3) If the contributing owner does not pay the defaulting owner's contribution or any penalty under subsection (2)(a), the body corporate may recover each of the following amounts as a debt from the defaulting owner—
(a) the amount of the defaulting owner's contribution;
(b) any penalty for not paying the contribution by the date for payment;
(c) any costs reasonably incurred by the body corporate in recovering an amount mentioned in paragraph (a) or (b).
(4) The contributing owner may start proceedings, on behalf of the body corporate, to recover an amount mentioned in subsection (3).
(5) A liability to pay an amount mentioned in subsection (2)(b) or (3) in relation to a lot is enforceable jointly and severally against each of the following persons—
(a) a person who was the owner of the lot when the debt became payable;
(b) a person (including a mortgagee in possession) who becomes an owner of the lot before the debt is paid.
(6) If there are 2 or more co-owners of a lot, the co-owners are jointly and severally liable to pay an amount mentioned in subsection (2)(b) or (3) in relation to the lot.
(7) In this section—
penalty means a penalty imposed by an entity under a contract between the entity and the body corporate for the supply of goods or services, including, for example, a late payment fee.