(a) In the event of a failure of any local government or nongovernmental entity to collect and remit in full all amounts due to the authority and all amounts due to others, which involve the credit or guarantee of the authority or of the state, on the date such amounts are due under the terms of any bond, revenue bond, note, or other obligation of the local government or nongovernmental entity, it shall be the duty of the authority to notify the state treasurer who shall withhold all funds of the state and all funds administered by the state, its agencies, boards, and instrumentalities allotted to such local government or nongovernmental entity until such local government or nongovernmental entity has collected and remitted in full all sums due and cured or remedied all defaults on any such bond, revenue bond, note, or other obligation.(b) Nothing contained in this Code section shall mandate the withholding of funds allocated to a local government or nongovernmental entity which would violate contracts to which the state is a party, the requirements of federal law imposed on the state, or judgments of any court binding the state.Amended by 2010 Ga. Laws 621,§ 3, eff. y which would violate contracts to which the state is a party, the requirements of federal law imposed on the state, or judgments of any court binding the state.Amended by 2010 Ga. Laws 621,§ 3, eff. 7/1/2010.Amended by 2008 Ga. Laws 398,§ 3-4, eff. 7/1/2008.
Georgia Legal Code