POWER OF MUNICIPALITY TO BORROW MONEY

POWER OF MUNICIPALITY TO BORROW MONEY.—

1. (1) The Municipality may in pursuance of any resolution passed at a special meeting of the Council borrow by way of debenture or otherwise on the security of all or any of the taxes, duties, fees, service charges and dues authorised by or under this Act, any sums of money which may be required,-
   • (a) for the construction of works; or
   • (b) for acquisition of lands and buildings; or
   • (c) for slum clearance and construction of tenements; or
   • (d) to pay off any debt due to the Government; or
   • (e) to repay a loan raised by the Municipality; or
   • (f) for town improvement Schemes; or
   • (g) for any public utility Schemes maintained or proposed to be maintained by the Municipality: Provided that —
     • (i) no loan shall be raised without the previous sanction of the Government or otherwise than in accordance with the provisions of the Kerala Local Authorities Loans Act, 1963 (30 of 1963) and the rules issued thereunder;
     • (ii) the amount of the loan the rate of interest and the terms including the date of floatation, the time and method or repayment and the like shall be subject to the approval of the Government.
2. (2) When any sum of money has been borrowed under sub-section (1) no portion thereof shall, without the previous sanction of the Government, be applied for any purpose, other than that for which it was borrowed.