Subsection 1: Common provisions.

In the event of withdrawal of the competence transferred to a public establishment of inter-municipal cooperation:

1° The movable and immovable assets made available to the establishment benefiting from the transfer of competence are returned to the communes previously competent and reintegrated into their assets at their net book value, with the additions made to these assets liquidated on the same basis. The balance of the outstanding debt transferred relating to these assets is also returned to the municipality that owns them;

2° The movable and immovable assets acquired or created after the transfer of competencies are divided between the municipalities that take over the competency or between the municipality that withdraws from the public inter-municipal cooperation establishment and the establishment or, in the specific case of a syndicate whose statutes allow it, between the municipality that takes over the competency and the syndicate of municipalities. The same applies to the proceeds from the sale of such assets. The balance of the outstanding debt contracted subsequent to the transfer of responsibility is divided under the same conditions between the communes that take over the responsibility or between the commune that withdraws and the public establishment for inter-municipal cooperation or, where applicable, between the commune and the syndicate of communes. In the absence of an agreement between the deliberative body of the public inter-municipal cooperation body and the municipal councils of the municipalities concerned, this distribution is set by order of the representative(s) of the State in the department(s) concerned. This decree is issued within six months of the referral to the State representative(s) in the department(s) concerned by the deliberative body of the public inter-municipal cooperation establishment or of one of the municipalities concerned.

The contracts are executed under the previous conditions until they expire, unless the parties agree otherwise. The substitution of a legal entity for contracts concluded by public establishments of inter-municipal cooperation does not entail any right to termination or compensation for the co-contractor. The public establishment of inter-municipal cooperation which returns the competence informs the co-contracting parties of this substitution.