26. The Fund must indemnify the local municipality for the costs the local municipality could incur to repair poor workmanship, defects or losses covered by the legal or conventional warranties transferred by the Fund that could affect property that has become the local municipality’s property or is under its management under sections 20 and 21, respectively.
The Fund is subrogated to the rights of the municipality against the author of such poor workmanship or such a defect or loss up to the amounts paid by the Fund to the municipality. The Fund may be fully or partly released from its obligation to indemnify the municipality where, owing to an act or omission of the municipality, the Fund cannot be so subrogated.
2017, c. 172017, c. 17, s. 26.