Local Government (No. 2) Act, 1960

Lending to another local authority.

5.—(1) A local authority may, subject to the sanction of the appropriate Minister, lend money, on such terms as to repayment and other matters as they consider proper, to another local authority.

(2) If a sum, which consists either of a portion of a loan advanced pursuant to this section by the council of a county to the commissioners of a town which is not an urban district and which is situated in the county, or of interest on any such loan, is not included in the appropriate demand under subsection (1) of section 26 of the Local Government Act, 1946 , it shall be deemed to have been included in the demand and subsection (4) of section 10 of that Act shall have effect accordingly.

(3) Lending under this section shall be a reserved function.