Local Authorities (Financial Provisions) Act, 1921

Borrowing on short term loans by local authorities.

3.—(1) A local authority may from time to time, for the purpose of providing temporarily for any current expenses that may be incurred by them in the execution or performance of any of their powers and duties (including the payment of sums due by them to meet the expenses of other authorities), with the consent of the Minister of Health, borrow by way of temporary loan or overdraft from any bank or otherwise, such sums as they may from time to time resolve, not exceeding in the aggregate at any time such amount as may be sanctioned by the Minister of Health.

(2) Any amount borrowed under this section shall be charged on the funds, properties, rates and revenues of the local authority pari passu with all other mortgages, stock, and other securities affecting the same.

(3) All sums borrowed by a local authority under this section together with the interest thereon shall be repaid out of the revenue of the local authority received in respect of the financial year in which the expenses were incurred:

Provided that, as respects money borrowed under this section before the first day of April, nineteen hundred and twenty-three, the Minister may, if satisfied that the particular circumstances of the case justify such a course, extend the term within which such repayment is to be made for a period not exceeding ten years from the date on which the money is borrowed.

(4) Where money is borrowed under this section for the purpose of defraying any expenses repayable out of the Metropolitan Common Poor Fund, or for the purpose of meeting any precept of the Minister of Health issued under the enactment relating to that fund, the amount of any interest paid on the sums so borrowed shall be repaid out of the Metropolitan Common Poor fund.

(5) The powers conferred by this section on any local authority shall be in addition to and not in derogation of any other powers of borrowing exercisable b the authority.