46. Borrowing powers for special purposes

In addition to the powers of borrowing conferred upon a local authority by section 41 and subject to any other written law, a local authority may, for the purpose of carrying out any development for residential, commercial and industrial undertakings, raise by way of loan from any person such amounts of money at such rates of interest and upon such conditions as may be agreed upon between the local authority and that person with the approval of the State Authority.

Any loan made to a local authority under the provisions of this section may be secured by a first mortgage or a first charge or by debentures upon the assets, and the revenues derived from the assets, in respect of which the money is borrowed but not upon any other assets or revenue of the local authority.

Section 45 shall not apply to such loan or to any interest due thereon, but the mortgagee, chargee or debenture holder may exercise all such legal and equitable remedies in respect of his mortgage, charge or debentures as may, from time to time, be in force in the