(1) The Government may, by notification in the Gazette make rules to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power such rules may provide as to:—
(i) the nature of the funds on the security of which money may be borrowed or interest guaranteed;
(ii) the works for which money may be borrowed or for the carrying out of which the payment of interest may be guaranteed;
(iii) the manner of making applications for permission to borrow money;
(iv) the manner of making application for sanction to give guarantee under section 5;
(v) the inquiries to be made in relation to such application and the manner of conducting such inquiries;
(vi) the inquiries to be made in relation to loans and the manner of conducting such inquiries;
(vii) the inspection of any works carried out under any contract in respect of which the payment of interest is guaranteed under this Act;
(viii) the accounts to be kept by the person or corporate body with whom such contract is made and for the inspection of the same;
(ix) the cases and the forms in which particulars of applications and proceedings, and orders thereon, shall be published;
(x) the cases in which and the conditions subject to which the Government may make loans;
(xi) the cases in which and the conditions subject to which local authorities may take loans from persons other than the Government;
(xii) the manner of recording and enforcing the conditions on which money is to be borrowed;
(xiii) the manner and the time of making or raising loans;
(xiv) the inspection of any works carried out by means of loans;
(xv) the instalments, if any, by which loans shall be repaid, the interest to be charged on loans and the manner and the time of repaying loans and of paying the interest thereon;
(xvi) the sum to be charged against the funds which are to form the security for the loan, as costs in effecting the loan;
(xvii) the attachment of such funds and the manner of disposing of or collecting them;
(xviii) the accounts to be kept in respect of loans;
(xix) the utilisation of unexpended balances of loans either in the reduction in any way of the debt of the local authority, or in carrying out any works which that authority is legally authorised to carry out, and the sanction necessary to such utilisation.
(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before the Legislative Assembly while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid, or the session immediately following, the Legislative Assembly makes any modification in the rule or decides that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be ; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.