(1) This section applies where,
(a) a municipality or eligible public organization has borrowed money from the Corporation for a purpose prescribed under clause 36 (1) (a); and
(b) money has been appropriated by the Assembly for payment to the municipality or the eligible public organization. 2011, c. 9, Sched. 32, s. 25 (1).
Agreement re default
(2) As security for repayment, the municipality or the eligible public organization may agree in writing with the Corporation that in the event of default on repayment of the amount borrowed under clause (1) (a) or any portion of the amount borrowed, the Minister of Finance may deduct from the money mentioned in clause (1) (b) amounts not exceeding the amounts that the municipality or the organization fails to pay to the Corporation on account of the indebtedness. 2011, c. 9, Sched. 32, s. 25 (2).
Minister of Finance shall deduct
(3) If the municipality or the eligible public organization has entered into an agreement under subsection (2) and is in default of repayment to the Corporation, the Minister of Finance shall deduct from the money mentioned in clause (1) (b) amounts not exceeding the amounts the municipality or organization fails to pay to the Corporation on account of the indebtedness and shall pay the amount deducted to the Corporation from the Consolidated Revenue Fund. 2011, c. 9, Sched. 32, s. 25 (3).