(1) This regulation applies if:
(a) the fee mentioned in item 1 in Schedule 4 is not paid on the day when it is payable; and
(b) within 1 month after that day, the Registrar invites the applicant 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 registration of each design disclosed in the application that has been registered ceases, at the end of the 2 month period.