Amendment status not verified — confirm the current text below against the official source.
(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, 89[Telangana] 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] may attach the income of the trust and thereupon the provisions of section 5 of the Local Authorities Loans Act, 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 sub- section (1) the *[State Government] shall so far as possible, reimburse the municipal council out of the income attached under that sub-section.