86. Procedure if Trust fails to make any payment in respect of loans of Trust.
(1)If the Trust fails to repay a loan taken in pursuance of [section 84-A or section 84-B] [Substituted for 'Section 84' by C.P. & Berar Act XXXIV of 1949, Section 29.] from a lender other that the [State] [Substituted for 'Provincial' by A. O., 1950.] Government, or any interest or cost due in respect of such loan, according to the conditions of the loan, the Accountant-General of [Bombay] [Substituted for 'Madhya Pradesh' by Bom. (V. R.) A. O., 1956.], if required by the [State] [Substituted for 'Provincial' by A. O., 1950.] Government, shall make such payment ; and [the Corporation] [Substituted by M.P. Act No. XIV of 1952, section 19.] shall forthwith pay from the municipal fund to the said Accountant-General as sum equivalent to the sum so paid by him.(2)If the Trust fails to repay a loan taken from the [State] [Substituted for 'Provincial' by A. O., 1950.] Government in pursuance of [section 84-A or section 84-B] [Substituted for 'Section 84' by C.P. & Berar Act XXXIV of 1949, Section 29.], or any interest or costs due in respect of such loan, according to the conditions of the loan, [the Corporation] [Substituted by M.P. Act No. XIV of 1952, section 19.] shall forthwith pay from the municipal fund to the [State] [Substituted for 'Provincial' by A. O., 1950.] Government a sum equivalent to the sum due from the Trust.(3)If the Trust fails to repay any loan, the [State] [Substituted for 'Provincial' by A. O., 1950.] Government may attach the rents and other [assets] [Substituted for 'income' by C. P. and Berar Act XXXIV of 1949, section 29.] of the Trust ; and thereupon the provisions of section 5 of the Local Authorities Loans Act, 1914 (V of 1914), shall, with all necessary modifications, be deemed to apply.(4)If [the Corporation] [Substituted by M.P. Act No. XIV of 1952, section 19.] makes default in the payment of any sum required to be paid by it under sub-section (1) or sub-section (2), the [State] [Substituted for 'Provincial' by A. O., 1950.] Government may make an order directing the person having the custody of the balance of the municipal fund to make such payment either in whole or in such part as is possible from such balance :Provided that no order shall be made by the [State] [Substituted for 'Provincial' by A. O., 1950.] Government directing payment of any sum until an opportunity has been given to [the Corporation] [Substituted by M.P. Act No. XIV of 1952, section 19.] to show cause why such order should not be made unless the [State] [Substituted for 'Provincial' by A. O., 1950.] Government considers that [the Corporation] [Substituted by M.P. Act No. XIV of 1952, section 19.] has already stated or had already ample opportunity of sating, its case.(5)Whether any amount paid by the Accountant-General under sub-section (1) is not repaid to him by [the Corporation] [Substituted by M.P. Act No. XIV of 1952, section 19.] under the said sub-section or by the person having the custody of the balance of municipal fund under sub-section (4) or whenever [the Corporation] [Substituted by M.P. Act No. XIV of 1952, section 19.] has made any payment to the Accountant-General under sub-section (1) or to the [State] [Substituted for 'Provincial' by A. O., 1950.] Government under sub-section (2) or whenever the person having the custody of 5[the Corporation] fund has made any payment to the Accountant-General or to the [State] [Substituted for 'Provincial' by A. O., 1950.] Government under sub-section (4) the [State] [Substituted for 'Provincial' by A. O., 1950.] Government shall, so far as possible, reimburse the Accountant-General or [the Corporation] [Substituted by M.P. Act No. XIV of 1952, section 19.] or such person as the case may be, out of the rents and [assets] [Substituted for 'income' by C. P. and Berar Act XXXIV of 1949, section 29.] attached under sub-section (3).
