Article 111
Restriction on borrowing
ConstitutionIn forceProvision 113 of 214
Article 111
(1)
The Federation shall not borrow except under the authority of federal law.
(2)
A State shall not borrow except under the authority of State law, and State law shall not authorize a State to borrow except from the Federation or, for a period not exceeding five years, from a bank or other financial source approved for that purpose by the Federal Government, and subject to such conditions as may be specified by the Federal Government.
(3)
A State shall not give any guarantee except under the authority of State law, and such guarantee shall not be given except with the approval of the Federal Government and subject to such conditions as may be specified by it.