Although the imposition of penalty interest charges is the default position, under section 85 (below) the OC – and I believe this means the committee, if they have been given those powers at a general meeting – can decide not to impose the penalty interest and can also organise a payment plan.
85 Interest, discounts on contributions and payment plans
(1) A contribution, if not paid when it becomes due and payable, bears until paid simple interest at an annual rate of 10% or, if the regulations provide for another rate, that other rate.
(2) Interest is not payable if the contribution is paid not later than one month after it becomes due and payable.
(3) However, an owners corporation may by resolution determine (either generally or in a particular case) that a contribution is to bear no interest.
(4) An owners corporation may, by resolution at a general meeting, determine (either generally or in a particular case) that a person may pay 10% less of a contribution levied if the person pays the contribution before the date on which it becomes due and payable.
(5) An owners corporation may, by resolution at a general meeting, agree to enter into payment plans, either generally or in particular cases, for the payment of overdue contributions. A payment plan is to be limited to a period of 12 months but a further plan may be agreed to by the owners corporation by resolution.