Co — THE KERALA LOCAL AUTHORITIES LOANS ACT, 1963 (Act 30 of 1963)

2 Co -~ > a" 1 Nothing in this section: shall bédeemed to authorise v.to. borrow_or spend money for\any purpose 'for~ w any: Nes ch, Pad 'Ss a in this section: shall bédeemed to authorise any: Nes avthoritv.to. borrow_or spend money for\any purpose 'for~ which, Pad 'Ss a The borrowing tome -wo. Zo to~ pa Government ocr tns i . t ocr . . intelotns i era loca] authority shall be © the annual income . era loca] authority shall the annual income of that l be al' era loca] authority shall be © the annual income of that local' 1 Oe ction shall affect the issuance of by pledging the revenue stream tion shall affect the issuance of by pledging the revenue stream *, Ww accounts and credit cnhangg, pledging the revenue stream *, Ww accounts and credit cnhangg, - ' ' ' » ava 4, Remedy by attachment ifloan not repaid.—If any money borrowed in accordance with the provisions of this Act, or any interest or. costs due in respect thereof, 1s or are not repaid according to the conditions of the loan, the Government if itself the lender, may, and _if the Govern- ment is not the lender shalf on the application of the lender attach the of the loan, the Government if itself the lender, may, and _if the Govern- ment is not the lender shalf on the application of the lender attach the funds on the security of which the loan was made. After such attachment, no person, except an officer appointed in this behalf by the Government, shall in any way deal with the attached funds, but such officer may do all acts im respect thereof which the borrowers might have done if such attachment had not taken place and may apply the proceeds in satisfaction of the loan and of all interests and costs due in respect thereof and of all expenses caused by the attachment and subsequent proceedings: Provided that no such attachment shall defeat or prejudice any debt for which the funds attached were previously pledged in accordance with law; but alt such pnior charges shall be paid out of the proceeds of the funds before any part of the proceeds 1s applied to the satisfaction of the liability in respect of which such attachment is made. Power of local authority to guarantee payment of interest on, or to create a fund for repayment of capital expended on any work to which the funds "may be applied.—The Government may authorise any local authority either severally or in conjunction with any other local authority, to charge its funds or any part thereof by way of guarantee for the payment of interest on, or by the creation of a fund for the repayment of, money expended or to be expended on any work or for any of the purposes to which such funds might be by Jaw applied. Remedy by attachment if engagements not fulfrlled.—In the event of default being made by a local authority in the fulfilment of engagements entered into under the last preceding section, the Government may on the application ofa person entitled under such engagements, attach the funds made subject to charge on account thereof. After such attachment, no person, except an officer appointed in this behalf by the Government shall in any way deal with the attached funds ; but such officer may do all acts in respect thereof which the loca] authority might have done if such attachment had not taken place, and may apply the proceeds to the discharge of the liabilities incurred and in payment of all costs due in respect thereof, and of all expenses caused by the attachment and subsequent proceedings consequent thereon : Provided that no such attachment shall defeat or prejudice any debt for which the funds attached were previously pledged in accordante with law; but all such prior charges shall be paid out of the proceeds of the funds before any part of the proceeds is applied to the satisfaction of a liability in respect of which such attachment is mace Issue of short term bills.—(1} Subject to the p f section 31 of the Reserve Bank of India Act, 1934, any local a y to which the Government may by notification in the Gazett d . the provisions of this section, may, with the previous sanction of the "Goernment, borrow money by means of the issue of bills or promissory noteinayable within any pertod, not exceeding twelve months, for any “4 { : e : N oe ZL = + purpose for which such local authority may lawfully borrow money under the provisions of this Act. purpose for which such local under the provisions of this Act. (2) The Government may, by general or special order, regulate the conditions on which money may be borrowed or repaid under this section, — 8. ifi Power of Government to make rules.—(1) The Government may, tion in the Gazette make rules to carry out the purposes of 8. Power of Government to make rules.—(1) The Government may, by notification in the Gazette make rules to carry out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power such rules may provide as to:— the nature of the funds on the security of which money may be borrowed or interest guaranteed; the works for which money may be borrowed or for the carrying out of which the payment of interest may be guaranteed; (#22) the manner of making applications for permssion to borrow money; (wv) the manner of making application for sanction to give guarantee under section 5; (v) the inquiries to be made in relation to such application and the manner of conducting such inquirtes, (ut) the inquiries to be made in relation to loans and the manner of conducting such inquiries, the inquiries to be made in relation manner of conducting such inquiries, (vit) the inspection of any works carried out under any contract in respect of which the payment of interest is the inspection of any works carried out under any contract in respect of which the payment of interest is guaranteed under this Act ; (vtit) the accounts to be kept by the person or corporate body with whom such contract 1s made and for the inspection of the same ; body with whom such inspection of the same ; (ix) the cases and the forms in which particulars of app).cations and proceedings, and orders thereon, shall be published , (x) the cases in which and the conditions subject to which the Government may make loans ; (x?) the cases in which and the conditions subject to which local authorities may take loans from persons other than the cases in which and the conditions subject to which local authorities may take loans from persons other than the Government ; (xiz) the manner of recording and enforcing the conditions on which money 1s to be borrowed ; (xuz) the manner and the time of making or raising loans , (xw) the inspection of any works carried out by means of loans; and of payin (xv) the instalments, if any, by which loans shall b the interest to be charged on loans and the m the time of repaying loans and of paying thereon ; 3/5—12a (xt) the sum to be charged against the funds which are to orm the security for the loan, as costs in effecting the the sum to be charged against the funds which are form the security for the loan, as costs in effecting the ° loan ; ° (xviz) the attachment of such funds arid posing of or collecting them. the manner of disthe attachment of such fund posing of or collecting them. (xviii) the accounts to be kept in respect of loans ; (aia) the utilisation of unexpended balances of loans either reduction in any way of the debt of the local the utilisation of unexpended balances of loans eith in the reduction in any way of the debt of the local y, or in carrying out auy works which that in the reduction in any way of the debt of th authority, or in carrying out auy works which that legally authorised to carry out, and the authority, or in carrying out auy works whic authority is legally authorised to carry out, and the sanction necessary to such utilisation. authority is legally sanction necessary to such utilisation. Loans not to be effected except under this Act.—LExcept as provided Provided that nothing heiein contained shall be deemed— (a) to preclude any local authority from exercising the borrow- s conferred on it by any special enactment now or hereafter (a) to preclude any local authority from exercising the borrow-ing powers conferred on it by any special enactment now or hereafter in force ; or to affect the power conferred on any local authority by Repeal.—The Local Authorities Loans Act, 1914 (Central

Section 2