(1) This regulation applies if:
(a) a fee mentioned in item 201, 202, 203 or 206 of Schedule 7 is not paid when it is payable; and
(b) within 1 month after the fee is payable, the Commissioner invites the person by whom the fee is payable to pay the fee within 2 months after the date of the invitation; and
(c) the fee is not paid within the 2 month period.
(2) The application lapses, or the patent ceases, at the end of the 2 month period.