Attachment of Municipal fund in default of repayment of loan.-

(1) If any money borrowed by the Corporation, or any interest of costs due in respect there of, is not repaid according to the conditions of the loan, the Government if it has itself given the loan may, and in other cases shall, on the application of the lender, attach the municipal fund in whole or in part. (2) After such attachment no person except an officer appointed in this behalf by the government shall, in any way, deal with the attached fund, but such officer may do all acts in respect thereof, which any municipal authority, officer or servant might have done if the attachment has not taken place, and may apply the proceeds in satisfaction of the arrears and of all interest and costs due in respect thereof, and of all expenses incidental to the attachment and subsequent proceedings: Provided that no such attachment shall defeat or prejudice any debt for which the fund or part thereof attached as previously pledged in accordance with law, but all such debts shall be paid out of the proceeds of the attached fund or part, before any part of the proceeds is applied to the satisfaction of the debt in respect of which such attachment is made.