Amendment status not verified — confirm the current text below against the official source.
[(1) A Panchayat may borrow any sums of money which may be required for the purposes for which the funds of the Panchayat may be applied under the provisions of this Act or any other law in force: [Provided that while raising such loan the assets of the Panchayat shall not be pledged for purposes other than for utilising in remunerative development schemes.] [(2.) The District Panchayat may issue Revenue Bonds and the net proceeds received from facilities and services created utilising such bond may be offered as security for such bonds. (3) Government may give direction to make good any short fall in escrow accounts from the grants due to the District Panchayat by them.] Original Section 197 renumbered as sub-section (1) of that section by ibid. Proviso added to the renumbered sub-section (1) by Act 13 of 1999, w.e.f. 24/03/1999. Sub-sections (2) & (3) added to the renumbered sub-section (1) by Act 13 of 1999, w.e.f. 24/03/1999.