Panchayat:Repo18/vol2-page0281

(v) the inquiries to be made in relation to such application and the manner of conducting such inquiries;

(vi) the inquiries to be made in relation to loans and the manner of conducting such inquiries;

vii) the inspection of any Works carried out under any contract in respect of which the payment of interest is guaranteed under this Act;

(viii) the accounts to be kept by the person or corporate body with whom such contract is made and for the inspection of the same;

(ix) the cases and the forms in which particulars of applications and proceedings, and orders thereon, shall be published;

(x) the cases in which and the conditions subject to which the Government may make loans;

(xi) the cases in which and the conditions subject to which local authorities may take loans from persons other than the Government;

(xii) the manner of recording and enforcing the conditions on which money is to be borrowed;

(xiii) the manner and the time of making or raising loans;

(xiv) the inspection of any works carried out by means of loans;

(XV) the instalments, if any, by which loans shall be repaid, the interest to be charged on loans and the manner and the time of repaying loans and of paying the interest thereon;

(xvi) the sum to be charged against the funds which are to form the security for the loan, as costs in effecting the loan;

(xvii) the attachment of such funds and the manner of disposing of or Collecting them;

(xviii) the accounts to be kept in respect of loans;

(xix) the utilization of unexpended balances of loans either in the reduction in any way of the debt of the local authority, or in carrying out any works which that authority is legally authorised to carry out, and the sanction necessary to such utilisation.

(3) Every rule made under the Act shall be laid, as soon as may be after it is made, before the Legislative Assembly while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is So laid, or the session immediately following the Legislative Assembly makes any modification in the rule or decides that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

9. Loans not to be effected except under this Act.- Except as provided by or under this Act, no local authority shall, for any purpose, borrow money upon or otherwise charge, its funds, and any Contract otherwise made for that purpose after the passing of this Act shall be void:

Provided that nothing herein contained shall be deemed -

(a) to preclude any local authority from exercising the borrowing powers Conferred on it by any special enactment now or hereafter in force; or

(b) to affect the power Conferred on any local authority by any such enactment to charge its funds, by guaranteeing the payment of interest on money to be applied to any purpose to which the funds of the local authority can legally be applied.

10. Repeal.- The Local Authorities Loans Act, 1914 (Central Act 9 of 1914), and the Madras Local Authorities Loans Act, 1888 (Madras Act I of 1888) as in force in the Malabar district referred to in Sub-section (2) of Section 5 of the States Reorganisation Act, 1956 (Central Act 37 of 1956) and the Travancore-Cochin Local Authorities Loans Act, 1951 (Act IX of 1951), are hereby repealed.

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