(1) The Board may, from time t-0 time, with the previous sanction of the State Government and subjoct to the provision$ of this Act and to such conditions as the State Government may, by general or special order, impose, bon'Ow any moneys required for the purposes of this Act by making arrange ments with the Banks or other bodies or institutions approved by the State Government for this purposo.
(2) The Board may advance any part of such borrowings to any local body for the performance of its duties and discharge of its functiolll! relating to war.er supply 1111d sewerage services on such terms and conditions as the Board may determine.
40. The Board shall creato a depreciation reserve and make annual provision therefor in accordance with such principles as may be prescribed.
41. The State Government may guarantoo the repayment of any loan and payment of interesi; on all or any of the loans given or transferred to the Board for the purposes of this Act.