In the event of default being made by a local authority in the fulfilment of engagements entered into under the last preceding section, the Government may on the application ofa person entitled under such engagements, attach the funds made subject to charge on account thereof. After such attachment, no person, except an officer appointed in this behalf by the Government shall in any way deal with the attached funds ; but such officer may do all acts in respect thereof which the loca] authority might have done if such attachment had not taken place, and may apply the proceeds to the discharge of the liabilities incurred and in payment of all costs due in respect thereof, and of all expenses caused by the attachment and subsequent proceedings consequent thereon :
Provided that no such attachment shall defeat or prejudice any debt for which the funds attached were previously pledged in accordante with law; but all such prior charges shall be paid out of the proceeds of the funds before any part of the proceeds is applied to the satisfaction of a liability in respect of which such attachment is mace