Amendment status not verified — confirm the current text below against the official source.
Renumbered by Act 11 of 2012 (w.e.f 30-01-2010 ). 1[(3) The borrowing powers of a local authority shall be fixed by the Government in relation to the annual income of that local authority: Provided that nothing in this section shall affect the issuance of Revenue Bonds by the local authority by pledging the revenue stream from the project ringfenced by escrow accounts and credit enhancements.] 2[3A. Constitution of the Development Fund, financial management and services etc., by Government.— (1) Save as otherwise provided in section 3, the Government may, by notification in the Gazette, with effect from such date as may be notified, constitute a Fund, namely, the Kerala Local Government Development Fund, for the objectives set forth hereunder, namely:— (a) to establish viable and sustainable financing arrangements which enable creation, upgradation and maintenance of cost effective and quality civic infrastructure in the State; (b) to mobilise resources for the infrastructure project using various financing instruments and financial structures such as bonds or debentures, equity, pooled finance arrangements etc.; (c) to borrow or raise money or loans or receive grants or accept contributions in such manner and on such terms, conditions and securities as the Board may deem fit from time to time; (d) to provide financial assistance in the form of loans, grants or a contribution thereof to local authorities for taking up and implementation of infrastructure projects which create enduring community assets and improve living standards of the population in their areas and to provide loans or equity in the infrastructure projects sponsored by the local authorities in association with non- government agencies when the infrastructure projects are considered strategically important: Provided that the investment shall comply with all laws regulating the environment and social protection; (e) to establish grant funds and provide grants from its own resources and to manage grant funds as the Government may direct from time to time in terms of such grants so as to ensure continuous upgradation of standards or organisational, financial and technical capacities of local authorities and to set up viable and