Amendment status not verified — confirm the current text below against the official source.
(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]2 and is immediately placed under the control of some other local authority, the municipal fund and property vesting in the [Municipality]3 shall vest in such other local authority, and the liabilities the[Municipality]3 shall be transferred to such other local authority. (2) When, in like manner, any local area ceases to be [transitional area or a smaller urban area, as the case may be]2 and is not immediately placed under the control of another local authority and balance of the municipal fund and other property vesting in the [Municipality]3 shall vest in the State Government and the liabilities of the [Municipality]3 shall be transferred to the State Government. Disposal of municipal fund when area ceases to be included in a [transitional area or a smaller urban area, as the case may be]2