Section 149: Limit to encumbrances through future debt
Jharkhand Municipal Act 2011State Act of Jharkhand · Act 7 of 2012
If and when required, the municipality may, for the purpose of issuing Municipal Bonds, limit its future debt encumbrances by adoption of suitable debt service coverage ratio as a minimum ratio in relation to its future cash flow projections.
150. Use of proceeds from Municipal Bonds - The fund to be raised from the Municipal Bonds shall be used for capital investment for development of urban infrastructure in the spheres of water-supply, sewerage, drainage, solid waste management, markets, roads, bridges, urban transport, and for reforming and improving the efficiency of existing systems of municipal administration and for repayment of loans for the aforesaid purposes raised through earlier issues of municipal bonds or otherwise.
PART IV MUNICIPAL REVENUE Chapter - 17 Sources of Internal Revenues