Power of municipality to borrow money

(1) The council may, with the previous sanction of the Government and in pursuance of any resolution passed at a special meeting borrow any sum of money,- (i) by way of debentures by raising loans from any Scheduled or Nationalised Bank or from any other Financial Institutions or Agencies as may be approved by the Government in this behalf, on the security of all or any of the taxes, duties, fees and dues authorised by or under this Act, for the purposes as may be determined by the Government; (ii) by way of raising loan from the public by issuing bonds for incurring specific items of capital expenditure. (2) The amount of loan, the rate of interest and the terms including the date of flotation, the time and method of repayments and the like shall be subject to the approval of the Government.