(a) No municipal official or employee shall authorize, direct or permit the expenditure of money from any Municipal Street Aid Fund for any purpose except those specifically authorized by this subchapter. Any municipal official or employee who violates this section shall be personally liable to the extent of the unauthorized expenditure.
(b) Upon report by the State Auditor of Accounts that expenditures of municipal street aid funds have been made by a municipality for purposes other than as set forth in this subchapter, the State Treasurer shall withhold all further payments of municipal street aid funds to such municipality until:
(1) The Attorney General or the courts of this State shall have found the disputed expenditures to have been proper;
(2) The municipality shall have reimbursed the municipal street aid funds to the extent of the improper expenditures; or
(3) The municipal official or employee responsible has made restitution to the Fund as set forth in subsection (a) of this section.