Local Government Act 1976 · Updated to 1 Dec 2012 · Part V · General Financial Provisions
47. Loans by Government
Feedback & supportSubject to any other written law, the Government of the
Federation or of any State may, out of its revenue or other moneys as may from time to time be set aside or appropriated for the purpose, grant loans to any local authority at such rates of interest and on such terms and conditions to be observed by the local authority obtaining such loan, in addition to those prescribed by law, as it shall think fit to impose.
Where a local authority is unable to pay any money due in respect of any loan granted under this section, the Government of the
Federation or of any State may, at any time after the expiry of sixty days from the date on which such money becomes due and payable, order that a rate or rates of such amounts as it may fix be made and levied upon all rateable property within the local authority area and such rate so ordered shall have the same incidence as any rate imposed by the local authority and may be enforced in like manner and the proceeds thereof shall be paid into the general revenue of the
Federation or of the State.