Section 256: Payment into sinking fund in case of default by a body.

Upon default by a body to meet its payment obligations under the loan and after the expiration of six months therefrom the trustees shall present the copy of the irrevocable letter of authority referred to in subsection (3) of section 224 of this Act to the Accountant-General of the Federation who shall take immediate steps to deduct from the statutory allocation of the body concerned such amount or amounts as are specified by the trustees as required to be paid into the sinking fund for the purpose of redeeming any outstanding obligations under the loan.