Section 154: Powers of 1Corporation to borrow money

(1) The 1Corporation may, with the previous sanction of the State Government and subject to the provisions of section 31 of the Reserve Bank of India Act, 1934 from time to time, borrow or re-borrowand take up at interest by the issue of debentures or otherwise on the security of any immovable property vested in the 1Corporation or proposed to be acquired by it under this Act or of all or any taxes, duties, tolls, cesses, fees, and dues which it is authorized to levy for the purposes of this Act, or of all or any of those securities, any sum necessary for the purpose of —\br @s (a) defraying any costs, charges or expenses, incurred by it in the execution of this Act ;\br @s (b) for discharging any loan contracted under this Act or any other loan or debt for the repayment of which the 1Corporation is liable\br @s (c) generally for carrying out the purposes of this Act, including the advance of loans authorized thereunder :\br @s Provided that—\br @s (i) no loan shall be raised for the execution of any work other than a permanent work which expression shall include any work of which the cost should, in the opinion of the State Government, be spread over a term of years ;\br @s (ii) no loan shall be raised unless the State Government has approved the purpose and amount of the loan, the rate of interest and other terms thereof including the date of flotation and the period and method of repayment ;\br @s (iii) the period within which the loan is to be repaid shall in no case exceed thirty years.\br @s (2) When any sum of money has been borrowed or re-borrowed under sub-section (1) —\br @s (a) no portion thereof shall without the previous sanction of the State Government, be applied to any purpose other than that for which it was borrowed ; and\br @s (b) no portion of any sum of money borrowed or re-borrowed for the execution of any work shall be applied to the payment of salaries or allowances of any 1Corporation officer or servant other than those who are exclusively employed upon the work for the construction of which the money was borrowed, or for meeting expenditure of recurring nature :\br @s Provided that such share of the cost on account of the salaries and allowances of 1Corporation officers or servants employed in part upon the preparation of plans and estimates or the construction or supervision of or upon the maintenance of the accounts of such work as the Executive Committee may fix may be paid out of the sum so borrowed or re-borrowed.\br @s