Membership plugin - modifying levels

What I have done is: users need lvl 2 to create a group ( sorted ) and once they create the group, buddypress's built in function promotes them to group admin.

Now if the lvl 2 user stops paying, what exactly happened? Does he's lvl drop? This is still unclear to me??

If the lvl gets dropped, where is this happening as I want to include groups_demote_member along with it so that the user looses he's admin privileges to he's group.

Then once he pays again is the lvl restored? Also where is this happening? If you could be specific.

Now if he pays, and he's lvl is restored back to 2, I want to include groups_promote_member( $user_id, $group_id, ‘admin’ ) so he gets he's admin privileges back.

@Barry sorry you replied to my other post as I was writing this once. Though the other one was a bit unclear and I think this would work better.