51. Procedure if trust fails to make any payment in respect of loans.
(1)If the trust fails to repay any loan taken in pursuance of section 50 or any interest or costs due in respect thereof, according to the conditions of the loan, the Accountant-General, [Telangana] [Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.] shall make such payment;and the chairman of the municipal council shall forthwith pay from the municipal fund to the said Accountant-General a sum equivalent to the sum paid by him;and the [State Government] [Throughout the Act, the words 'Provincial Government' were substituted for the words 'Local Government' by the Adaptation Order, 1937, and the word 'State' was substituted for 'Provincial' by the Adaptation Order, 1950.] may attach the income of the trust and thereupon the provisions of section 5 of the Local Authorities Loans Act, 1914, (Central Act 9 of 1914). shall, with all necessary modifications, be deemed to apply.(2)Whenever the chairman of a municipal council has made any payment to the Accountant-General under subsection (1) the [State Government] [Throughout the Act, the words 'Provincial Government' were substituted for the words 'Local Government' by the Adaptation Order, 1937, and the word 'State' was substituted for 'Provincial' by the Adaptation Order, 1950.] shall so far as possible, reimburse the municipal council out of the income attached under that sub-section.
