Borrowing powers of local authorities

(1) A local authority way, subject to the prescribed conditions, borrow on the security of its funds or any portion thereof for any of the following purposes, namely :- (i) the carrying out of any works which it is legally authorised to carry out ; (ii) the giving of relief and the establishment and maintenance of relief works in times of famine. scarcity or any other cala-mity ; (iii) the prevention of the outbreak or spread of any dangerous epidemic disease ; (iv) any measures which may be connected with or ancillary to any purposes specified in clauses (ii) and (iii) ; (v) the repayinent of money previously borrowed in accordance w'h law : Provided that, nothing in clause (v) shall be deemed to empower a local authority to fix a period for the repayment of any money borrowed thereunder which, when the period fixed for the repayment the money previously borrowed is taken into account, will exceed the maximum period fixed for the repayment of a loan by or under any enactment for the time being in force. (2) Nothing in this section shall be deemed to authorise any local authority- (a) to borrow or spend money for any purpose for which under the law for the time being in force, it is not authorised to apply its fnnds, or (b) to borrow money by means of the issue of bills or pro-missory notes payable within any period not exceeding twelve months.