41(1)If two local governments are amalgamated or if a local government is incorporated as a different category of local government, all the assets and liabilities of the former local government or local governments and its or their local commissions are assets and liabilities of the new local government and the new local government for all purposes stands in the place and stead of the former local government or former local governments.

41(2)When the territorial limits of a local government are decreased, its assets and liabilities and those of its local commissions shall be adjusted in accordance with an agreement between the local government and any other local government that is affected.