Local Government (No. 2) Act, 1960


Borrowing and Lending of Money.


4.—(1) Subject to subsection (2) of this section and any regulations under subsection (3) of this section—

(a) a local authority may borrow money,

(b) the borrowing may be effected in any manner which the local authority consider suitable, including, in particular, by way of mortgage, drawing of bills of exchange, issue of stock or bonds, temporary loan or overdraft,

(c) the loan and the interest or dividends thereon may be secured on the revenues, funds or property of the local authority.

(2) (a) Borrowing under this section, other than excepted borrowing, shall not be effected save with the sanction of the appropriate Minister.

(b) The appropriate Minister may by direction except any borrowing from the foregoing paragraph, and the reference in that paragraph to excepted borrowing shall be construed as a reference to borrowing so excepted.

(3) The Minister for Local Government may, after consultation with the Minister for Finance, make regulations in relation to borrowing by local authorities and such regulations may, in particular, make provision with respect to all or any of the following matters:

(a) sources of loans,

(b) periods for repayment of loans,

(c) charging of and security for loans,

(d) in the case of mortgages, the form thereof, the registers to be kept in relation thereto, the transfer thereof and the form of such transfers and the appointment and powers of receivers.