Application of municipal property and lands within and without the municipal borough.

The municipal fund and all property vested in a municipality shall be applied for purposes of this Act within the limits of the municipal borough :

Provided always that it shall be lawful for the municipality with the sanction of the State Government or any officer duly authorised by it in this behalf,-

(a) to incur expenditure in the acquisition of land or in the construction, maintenance, repair or purchase of works beyond the said limits for the purpose of obtaining a supply of water required for the inhabitants of the municipal borough or of providing the supply of electrical energy for the use of the inhabitants of the said borough, or of establishing slaughter houses or places for the disposal of night soil or sewage or carcasses of animals or for drainage works or for the purpose of providing mechanically propelled transport facilities for the conveyance of the public or for the purpose of setting up of dairies or farms for the supply, distribution and processing of milk or milk products for the benefit of the inhabitants of the municipal borough or for any other purpose calculated to promote the health, safety or convenience of the inhabitants of the said borough; or

(b) to make a contribution towards expenditure incurred by any other local authority or out of any public funds for measures affecting the health, instruction, safety or convenience of the public and calculated to benefit the residents within the limits of the contributing municipality: or

(c) to create scholarships tenable outside the limits of the municipal borough:

Provided further, that nothing in this section or in any other provision of this Act shall be deemed to make it unlawful for a municipality when with such sanction as aforesaid it has constructed works beyond the limits of the municipal borough for the supply of water or electrical energy or for drainage as aforesaid-

(a) to supply or extend to or for the benefit of any person or buildings or lands in any place whether such place is or is not within the limits of the said borough, any quantity of water or electrical energy not required for the purposes of this Act within the said borough, or the advantages afforded by the system of drainage works, on such terms and conditions with regard to payment and to the continuance of such supply or advantages as shall be settled by agreement between the municipality and such person or the occupier or owner of such buildings or lands: or

(b) to incur any expenditure, on such terms with regard to payment as may be settled as aforesaid, for the construction, maintenance, repairs or alteration of any connection pipes or any electric supply lines or other works necessary for the purposes of such supply or for the extension of such advantages. (c) to create scholarships tenable outside the limits of the municipal borough: Provided further, that nothing in this section or in any other provision of this Act shall be deemed to make it unlawful for a municipality when with such sanction as aforesaid it has constructed works beyond the limits of the municipal borough for the supply of water or electrical energy or for drainage as aforesaid- (a) to supply or extend to or for the benefit of any person or buildings or lands in any place whether such place is or is not within the limits of the said borough, any quantity of water or electrical energy not required for the purposes of this Act within the said borough, or the advantages afforded by the system of drainage works, on such terms and conditions with regard to payment and to the continuance of such supply or advantages as shall be settled by agreement between the municipality and such person or the occupier or owner of such buildings or lands: or (b) to incur any expenditure, on such terms with regard to payment as may be settled as aforesaid, for the construction, maintenance, repairs or alteration of any connection pipes or any electric supply lines or other works necessary for the purposes of such supply or for the extension of such advantages.