117NLate payment or non-payment of lump sum contribution

1. This section applies if—

2. an eligible ratepayer has elected to make a lump sum contribution to a capital project in respect of a rating unit; and
3. the eligible ratepayer (or any other person who is for the time being the ratepayer) in respect of the rating unit does not pay the contribution, or a contribution instalment, by its due date (including any amount due under section 117M(4)(b)).

4. The local authority concerned may either—

5. cancel the election; or
6. recover the amount owing in a court of competent jurisdiction as a debt due.

7. If the local authority cancels the election it must amend the entries in its rating information database and rates records in relation to the rating unit, for each year that it has recorded information under section 117K, to reflect the fact that the rating unit is liable, for each of those years, for the targeted rate or targeted rates referred to in section 117K(1)(b).

8. The local authority must record any amount paid as a lump sum contribution in respect of the rating unit as a payment of the rates referred to in subsection (3)—

9. for the first year that the rating unit was liable for those rates; and
10. as being paid at the date that the lump sum contribution was paid.

11. The local authority must record any surplus amount resulting from the operation of subsection (4) as a payment of the rates referred to in subsection (3)—

12. for the next year that the rating unit was liable for those rates; and
13. as being paid at the date that the lump sum contribution was made.

14. The local authority must continue to apply any surplus amount in the manner set out in subsection (5) until either—

15. no surplus remains; or
16. no rates remain unpaid.

17. If, after the operation of subsections (5) and (6),—

18. a deficit for any financial year concerned is shown in the rates record, the local authority must treat the amount or amounts as unpaid rates for the purposes of sections 46(2)(i), 57, and 58:
19. a surplus remains, the local authority must credit the rates record.

20. Subsection (7)(a) is subject (in any particular case) to the local authority applying its rates remission policy under section 85.

21. The local authority must apply any credit under subsection (7)(b) in the following manner and order of priority:

22. pay any arrears owing in respect of the rating unit for 1 or more previous financial years:
23. pay any arrears owing in respect of the rating unit for the current financial year:
24. record a credit in the rates record against future rates in respect of the rating unit.

25. If subsection (9)(c) applies,—

26. the ratepayer in respect of the rating unit may apply to the local authority, in writing, for a refund of the credited amount; and
27. the local authority must, as soon as practicable, make the refund.

28. The local authority must issue an amended rates assessment for each year in respect of which it has amended the rates records under this section.