Amendment status not verified — confirm the current text below against the official source.
(1) The Municipality may, from time to time, raise, by a resolution in this behalf passed at a meeting of the Municipality, a loan within the limits set by the comprehensive debt limitation policy framed under section 108, by the issue of debentures or otherwise, on the security of the properly tax or of all or any of the other taxes, surcharges, cesses and fees and dues under this Act or of both the properly tax and all or any of the other taxes, surcharges, cesses and fees and dues under this Act, or on the guarantee by the State Government, of any sum of money which may be required for the purpose of this Act namely:- (a) construction of works (b) Acquisition of lands and building. (c) paying off any debt due to the State Government, (d) repayment of a loan raised (e) acquisition of a public utility concern which renders such services as the Municipality is authorized to render (f) purchase of vehicles, locomotive engines, boilers and machinery necessary for carrying out the purposes of this Act, or (g) any other purpose for which the Municipality is, by or under this Act or any other law forth time being in force, authorized to borrow: Provided that any loan proposed to be raised which goes beyond the limits set by the comprehensive debt limitation policy as aforesaid shall require the previous sanction of the State Government in regard to its purpose, the quantum. the rate of interest and the period for repayment, and the other terms and conditions, if any: Provided further that in addition to the loans as aforesaid, the Municipality may also take loan from the State Government or any statutory body or public sector corporation. (2) When any loan has been raised under subsection (1),- (a) no portion thereof shall- without the previous sanction of the State Government, be applied to any purpose other than that for which it has been raised, and (b) no portion of any loan raised for any of the purposes referred to in that sub-section shall be applied to the payment of salaries or allowances to any officer or other employee of the Municipality, other than those who are exclusively employed for the purpose for which the loan has been raised. Explanation: - The expression “dues under this Act" in sub-section (1) shall, for the purpose of clause (e) of that sub-section, be deemed to include the income derivable from the public utility concern referred to in that clause.