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| (1) |
The
Council may, in pursuance of any resolution passed by it, borrow
by way of debenture or otherwise on the security of all or any
of the taxes, rates, cesses, fees and charges authorised by
or under this Act, any sums of money which may be required-
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| (a)
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for
acquiring any land which it has power to acquire; |
| (b) |
for erecting any building which it has power to erect; |
| (c)
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for
the execution of any permanent work, the provision of
any plant, or the doing of any other thing which it has
power to execute, provide or do, if the cost of carrying
out the purpose in question ought to be spread over a
term of years;
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| (d) |
to
pay of any debt due to the Central Government or the Government;
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| (e) |
to
repay a loan previously raised under this Act or any other
Act previously in force; or |
| (f) |
for
any other purpose for which the Council is, by virtue
of this Act or any other law for the time being in force,
authorized to borrow;
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Provided
that-
| (i) |
no
loan shall be raised without the previous sanction
of the Central Government or without previous publication
of the application for sanction under the Local
Authorities Loans Act, 1914 (9 of 1914), and the
rules made thereunder; and
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| (ii) |
the
amount of loan, the rate of interest and the terms
including the date of floatation, the time and method
of repayment and the like shall be subject to the
approval of the Central Government.
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| (2) |
When
any sum of money has been borrowed under sub-section (1), no
portion of any sum of money borrowed for any of the purposes
referred to in clause (c) of sub-section (1) shall be applied
to the payment of salaries and allowances to any officers or
other employees other than those exclusively employed in connection
with the carrying out of that purpose.
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