27. Except where the Fund is subrogated to the rights of a local municipality under the second paragraph of section 26, the Fund must take up a local municipality’s defence, as a plaintiff, intervenor, defendant or impleaded party, with respect to any application concerning poor workmanship, defects or losses covered by the legal or conventional warranties transferred by the Fund and affecting property that has become the municipality’s property or is under the municipality’s management under sections 20 and 21, respectively. The Fund must also indemnify the municipality for the costs, including the professional fees of its advocates and the legal costs, that the municipality could incur with respect to such an application. The same applies to the costs incurred for a settlement reached before such an application.
2017, c. 172017, c. 17, s. 27.