Power of Authority to borrow

(1) Notwithstanding anything contained in any law for the time being in force under which any local body is constituted, the Authority shall with effect from the date of its establishment be the only local authority authorised to borrow any sum of money for water supply and sewerage works. (2) Without prejudice to the provisions of sub-section (1), the Authority may, from time to time, with the previous sanction of the Government and subject to the provisions of this Act and to such conditions as the Government may, by general or special order, determine, borrow any sum required for the purposes of this Act whether by the issue of bonds or stock or otherwise or by making arrangement with Bank, other bodies or institutions approved by the Government in that behalf. (3) Stocks issued by the Authority under this section shall be issued, transferred, dealt with and redeemed in such manner as the Government may, by general or special order, direct.