Section 11701.251 - Commonwealth agency payments or assistance(a)Withholding of certain Commonwealth funds.--Except as provided in section 302(b), upon certification by the secretary that a financially distressed municipality has failed to adopt a plan or implement an adopted plan as proposed under this act or has adopted a plan which is inadequate to address the municipality's financial distress, the municipality shall not receive a grant, loan, entitlement or payment from the Commonwealth or any of its agencies. Moneys withheld shall be held in escrow by the Commonwealth until the secretary has rescinded the certification.(b)Exceptions to the withholding of Commonwealth funds.--Notwithstanding the provisions of subsection (a), the following funds shall not be withheld from a municipality. (1) Capital projects under contract in progress.(2) Moneys received by a municipality from an agency of the Commonwealth or the Federal Government subsequent to the declaration of a disaster resulting from a catastrophe.(3) Pension fund disbursements made pursuant to State law. 1987, July 10, P.L. 246, No. 47, § 251, effective in 60 days.