Power of corporation to borrow money

(1) The corporation may, in pursuance of any resolution passed at a special meeting, barrow by way of debenture or otherwise, on the security of all or any of the taxes, duties, fees and dues authorised by or under this Act, any sums of money which may be required,- (a) for the construction of works, (b) for the acquisition of lands and buildings, or (c) to pay off any debt due to Government, or (d) to repay a loan previously raised under this Act or any other law previously in force: Provided that,- (i) no loan shall be raised without the previous sanction of the Government, and (ii) the amount of the loan, the rate of interest and the terms including the date of floating, the time and method of repayment and the like shall be subject to the approval of the Government. (2) When any sum of money has been borrowed under sub-section (1),- (a) no portion thereof shall, without the previous sanction of the Government, be applied to any purpose other than that for which it was borrowed, and (b) no portion of any sum of money borrowed under clause (a) of sub-section (1) shall be applied to the payment of salaries or allowances to any corporation officers or servants other than those exclusively employed upon the works for the construction of which the money was borrowed.