Assets and liabilities of former municipalities
(a)
the inhabitants of an area that includes two or more municipalities are incorporated or amalgamated under section 14,
(b)
a village is incorporated as a town, or
(c)
a town is incorporated as a city,
all the assets and liabilities of the former municipality or municipalities and its or their local commissions are assets and liabilities of the new municipality and the new municipality for all purposes stands in the place and stead of the former municipality or municipalities.
21(2)When the territorial limits of a municipality are decreased, the assets and liabilities of the former municipality and its local commissions shall be adjusted in accordance with an agreement between the municipality and the Minister.
1966, c.20, s.22; 1967, c.56, s.7; 1969, c.58, s.6