(1) The Commonwealth must pay to the Authority, for the purposes of the Murray - Darling Basin Special Account, an amount equal to any amount paid by the Authority in discharging any liability of the Authority arising:
(a) from an act or omission in the bona fide execution of the powers vested in the Authority by or under the Agreement; or
(b) because of the operation of section 239F, 239J or 239K (about transitional matters relating to the Murray - Darling Basin Commission).
(2) For the purposes of the Agreement, treat a payment by the Commonwealth under subsection (1) as a payment made in respect of losses or costs incurred by the Commonwealth arising:
(a) if the payment relates to a liability of the Authority arising as described in paragraph (1)(a)--as described in paragraph (1)(a); or
(b) if the payment relates to a liability of the Authority arising as described in paragraph (1)(b)--as described in paragraph (1)(b).
(3) Amounts payable under subsection (1) are to be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.