Section 41
Borrowing powers
of Local Authorities Ordinance, 1996
—
(1)
A local authority may, with the consent of the Majlis
Mesyuarat Kerajaan Negeri and subject to such terms and conditions as it may think fit to impose, borrow such sums as may be required for any of the following purposes:
(a)
for acquiring any land or other moveable assets which the local authority has power to acquire;
(b)
for erecting any building which the local authority has power to erect;
(c)
for the execution of any permanent work, the provision of any plant or the doing of any other thing which the local authority has power to execute, provide or do; and
(d)
for paying off existing loans.
(2)
Any moneys borrowed from the Government by a local authority shall, subject to any prior charge, be a first charge upon the revenues and assets of such local authority.
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