Issue of Municipal Bonds for development of urban infrastructure and Pledging of Municipal Assets as security

(1). Subject to such guidelines and procedure as the Central Government may lay down, from time to time, and with the previous approval of the State Government, the municipality may issue tax-free Municipal Bonds for financing of projects for development of urban infrastructure. (2). The municipality may pledge its movable and immovable assets, lands, buildings and revenues from tax in special escrow accounts as security for the Municipal Bonds issued for development of urban infrastructure.