Amendment status not verified — confirm the current text below against the official source.
Notwithstanding anything contained in section 109, the Municipality may, where the raising of a loan is sanctioned by the State Government under that section, instead of raising such loan or any part thereof, take credit, on such terms as may be approved by the State Government, from any scheduled bank, to be kept in a cash account bearing the name of the Municipality to the extent of such loan or any part thereof and, with the sanction of the State Government, may grant mortgage of all or any of the properties vested into the Municipality by way of securing the repayment of the amount of such credit or of the sums advanced from time to time on such cash account with interest.