Malaysia legislation
Section 41
Section 41
(a)
to defray the expenses incurred or to be incurred for any of the following:
(i)
the acquisition of land which the local authority is empowered to acquire;
(ii)
the erection of any building which the local authority has authority to erect;
(iii)
the execution of any permanent work, the provision or renewal of any plant or the provision or replacement of vehicles; and
(b)
to pay off existing loans:
Provided that the loan shall not make the total indebtedness of the local authority to exceed five times the annual value as contained in the current Valuation List of the local authority and provided that the period for repayment of such loan shall not exceed sixty years.
(2)
Before any such resolution is submitted to the local authority a detailed estimate shall be made of the cost of the proposed project on which the money loaned is to be expended, the annual cost of upkeep of such project, the annual revenue to be derived therefrom, the duration thereof, and the proposed manner of repayment.
Power of local authority to issue mortgages or debenture stock and to make regulations in respect thereof