Power of Panchayat to borrow money

Power of Panchayat to borrow money.-

1. (1) A Panchayat may, with the previous sanction of the State Government and subject to such conditions as may be imposed by it, borrow money from any financial institution for the purpose of carrying out any of the purposes of this Act.
2. (2) The Panchayat may pledge or mortgage any of its property as security for the payment of money so borrowed.