(2) However, if a
former water authority is converted to 2 or more alternative institutional
structures, a legal proceeding by or against the authority that has not been
finished before its changeover day may, from the changeover day, be continued
and finished by or against whichever of the new entities for the authority
that is the most appropriate in the circumstances.
(3) Also, if a
former water authority is converted to an alternative institutional structure
consisting of all the parties to a closed water activity agreement, a legal
proceeding against the authority that has not been finished before the
changeover day may be continued and finished against any 1 or more of the
parties.
If
there is a legal proceeding against a former water authority in relation to
supply of water to a customer of the authority that has not been finished
before the changeover day for the authority, the legal proceeding may be
continued and finished by the alternative institutional structure that takes
over the function of supplying water to the authority’s customers.