Section 11701.707 - Use or disposition of assets(a)Use of proceeds.--The proceeds from any sale, lease, conveyance, assignment or other use or disposition of assets of the distressed municipality or authority shall be applied to the payment of outstanding debt obligations owed by the distressed municipality or authority, subject to any lien, charge, covenant, restriction, contract, law, rule or regulation, that encumbers or is otherwise applicable to the assets. Proceeds remaining after payment of outstanding debt obligations owed by the distressed municipality or authority may be used by the receiver to restructure or provide escrow for the payment of future debt obligations or to meet operating and capital needs of the distressed municipality or authority.(b)Prohibitions.--Nothing under this section shall be construed to authorize the receiver to unilaterally abrogate, alter or otherwise interfere with a lien, charge, covenant or relative priority that is: (1) held by a holder of a debt obligation of a distressed municipality; and(2) granted by the contract, law, rule or regulation governing the debt obligation. 1987, July 10, P.L. 246, No. 47, § 707, added 2011, Oct. 20, P.L. 318, No. 79, § 2, imd. effective. Amended 2014, Oct. 31, P.L. 2983, No. 199, § 30, effective in 60 days [Dec. 30, 2014].