Panchayat:Repo18/vol2-page0282

*THE LOCAL AUTHORITIES LOANS RULES, 1965
S.R.O. No. 268/65- In exercise of the powers conferred by Section 8 of the Kerala Local Authorities Loans Act, 1963 (30 of 1963), the Government of Kerala hereby make the following rules namely:-

RULES

1. Short title and commencement.- (1) These rules may be called the Kerala Local Authorities Loans Rules, 1965.
(2) They shall come into force with effect from 1st August, 1965.
2. Definitions.- In these rules, unless the context otherwise requires
(i) the Act means the Kerala Local Authorities Loans Act, 1963 (Act 30 of 1963);
(ii) “Government loan" means a loan taken by a local authority from the Government funds;
(iii) "Ioan” means a loan made, taken or raised under the Act;
(iv) “non-Government loan” means a loan raised otherwise than from Government funds;
(v)"term of a loan" means the period elapsing between the date on which the loan is completely made, taken or raised and the date on which it is completely repaid.

3. Limitation of borrowing power.- A local authority shall not borrow money for any of the purposes specified in Clauses (i) to (iv) of sub-section (1) of Section 3 of the Act unless the Work to be carried out is either
(a) within the local limits of the area subject to the control of the local authority,
(b) for the benefit of the inhabitants within those limits.

4. Nature of the funds on the security of which a local authority may borrow.- For the purpose of borrowing money under Section 3 of the Act or guaranteeing interest under Section 5 of the Act, a local authority shall not offer as security any of its funds which is charged under any provision of law for any specific purpose other than the one for which the loan is proposed to be raised or for which the interest is proposed to be guaranteed, except with the approval of the Government.

5. Works for which money may be borrowed etc.— A local authority shall not borrow money nor shall it guarantee the payment of interest for any work which it is not legally authorisedto execute under the provisions of law governing it.

6. Manner of application for permission to borrow money- When a local authority desires to borrow money, it shall submit an application to the Government or to such authority as may be specified by them in this behalf, in the form given in Appendix I.

7. Manner of making application for sanction to give guarantee.- When a local authority desires either severally or in Conjunction with any other local authority to charge its funds or any part thereof by way of guarantee for the payment of interest on money expended or to be expended on any work, under Section 5 of the Act, it shall submit an application to the Government in the form given in Appendix II

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