(1) A local authority may, subject to the prescribed conditions, borrow money from the Government or with the previous sanction of the Government from any other person, on the security of its funds or any portion thereof, for any of the following purposes, namely:—
(i) the carrying out of any work which it is legally authorised to carry out;
(ii) the giving of relief and the establishment and maintenance of relief works in times of famine, scarcity, epidemic or flood;
(iii) the prevention of the outbreak or spread of any dangerous epidemic disease;
(iv) any measures which may be connected with or ancillary to any purposes specified in clauses (ii) and (iii);
(v) the repayment of money previously borrowed in accordance with law:
Provided that no portion of the money so borrowed shall be applied to any purpose other than that for which it was borrowed.
(vi) any other purpose which the Government may specify.
(2) (a) The time for the repayment of any money borrowed under this section shall in no case exceed sixty years.
(b) The time for the repayment of any money borrowed before the commencement of this Act shall not, except with the express sanction of the Government, extend beyond the period of sixty years.
(c) The time for the repayment of any money borrowed for the purpose of discharging any previous loan shall not, except with the express sanction of the Government, extend beyond the unexpired portion of the period for which such previous loan was raised.
1. Renumbered by Act 11 of 2012 (w.e.f 30-01-2010 ).
2. Inserted by Act 11 of 2012 (w.e.f 30-01-2010 ).
3. Renumbered by Act 11 of 2012 (w.e.f 30-01-2010 ).
1[(3) The borrowing powers of a local authority shall be fixed by the Government in relation to the annual income of that local authority:
Provided that nothing in this section shall affect the issuance of Revenue Bonds by the local authority by pledging the revenue stream from the project ringfenced by escrow accounts and credit enhancements.]