121. Disposal of municipal fund when area ceases to be a [transitional area or a smaller urban area, as the case may be.] [Substituted by U.P. Act No. 12 of 1994.]
(1)When, by reason of a notification under Section 3, any local area ceases to be [transitional area or a smaller urban area, as the case may be,] [Substituted by U.P. Act No. 12 of 1994.] and is immediately placed under the control of some other local authority, the municipal fund and property vesting in the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] shall vest in such other local authority and the liabilities of the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] shall be transferred to such other local authority.(2)When, in like manner, any local area ceases to be a [transitional area or a smaller urban area, as the case may be,] [Substituted by U.P. Act No. 12 of 1994.] and is not immediately placed under the control of another local authority, and balance of the municipal fund and other property vesting the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] shall vest in the [State Government] [Substituted by ALO 1950.] and the liabilities of the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] shall be transferred to [the State Government] [Substituted by ALO 1950.].
