Vidhi Codex

THE KERALA LOCAL AUTHORITIES LOANS ACT, 1963

The Kerala Local Authorities Loans Act 1963

Finance196312 sections

This law provides a legal framework regulating how local government bodies in Kerala, such as municipalities and panchayats, can borrow money, issue short-term bills, and raise funds for public infrastructure projects. It establishes the Kerala Local Government Development Fund and a governing Board to manage investments, financial assistance, and partnerships with non-government entities. The Act applies to local authorities across the State of Kerala and financial institutions providing them loans. It matters because it ensures structured, accountable financing for essential civic amenities like roads, water supply, and sanitation while giving the state government powers to intervene, attach funds, or guarantee payments if defaults occur.

Start reading →Read full ActSections
  1. 0. Preamble
  2. 1. Short title, extent and commencement.
  3. 2. Definitions.
  4. 3. Constitution of the Board and its powers
  5. 3A. Constitution of the Development Fund, financial management and services etc., by Government.
  6. 4. Remedy by attachment if loan not repaid
  7. 5. Power of local authority to guarantee payment of interest on, or to create a fund for repayment of capital expended on any work to which the funds may be applied.
  8. 6. Remedy by attachment if engagements not fulfilled.
  9. 7. Issue of short term bills.
  10. 8. Power of Government to make rules.
  11. 9. Loans not to be efftected except under this Act.
  12. 10. Repeal.

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