Municipal Restructuring Fund. Eligibility for funds. Submission of restructuring plan. Board monitoring of use of funds. Guidance development by secretary. Board approval of budgets. Distribution of funds to third party. Use of funds to pay arbitrator. Exception.

(b) The secretary may distribute funds from the Municipal Restructuring Fund to a third party on behalf of a designated tier II, tier III or tier IV municipality. Funds received by a municipality pursuant to this section may be used, in part, to pay an arbitrator selected pursuant to clause (v) of subdivision (3) of subsection (a) of section 7-576e . (c) Notwithstanding the provisions of subsection (a) of this section, in making distributions from the Municipal Restructuring Fund, the board shall give immediate consideration to any municipality that shall default on debt obligations by January 1, 2018, without an immediate distribution of such funds.