Malaysia legislation
Section 58
Section 58
(1)
An Authority may from time to time, when authorised by resolution in that behalf passed by a two-thirds majority of the members present and voting at a meeting of which due notice, including the wording of such resolution, shall have been given, raise loans in such amounts and on such conditions as the Minister shall have approved.
(2)
Subject to the provision of this Ordinance and any other law for the time being in force, the Minister of Finance may out of such public revenues or other moneys as may from time to time be set aside or appropriated for the purpose, grant loan to any Authority, and may impose such terms and conditions to be observed by the Authority obtaining such loan, in addition to those prescribed by law, as he shall think fit.
(3)
Any financial liability to the Government lawfully assumed by an Authority for the purpose of acquiring land or of acquiring from the Government any works, schemes,
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undertakings or assets shall until discharged be deemed to be a loan granted by the
Government.
(4)
In considering the propriety of applying for or granting a loan the Authority and the Minister of Finance shall have regard to –
(a)
the amount of any debt then due by the Authority and the sufficiency of the security for its repayment;
(b)
whether the work for which the loan is intended would be of such benefit to the public as to justify a loan from Government funds;
(c)
the probable period of durability and continuing utility of the work proposed to be undertaken.
(5)
Every loan granted by the Government under this Ordinance shall, subject to any prior loans obtained from or advances made by the Government under the provisions of this Ordinance or any prior charge or hypothecation, be a first charge upon the revenues and assets of the Authority obtaining such loan.
Advances to and by Authorities.