Panchayat:Repo18/vol2-page0275

Sec. 3 LOCAL AUTHORITIES LOANS ACT, 1963 275.

(i) "investment" means money lent or to be lent by the Development Fund only for infrastructure projects and includes money placed by the Development Fund in instruments such as Government promissory notes or other Government securities, stock or share in any banking Company or other public Company, or stocks, funds, shares, debenture, debenture stock, commercial papers, financial papers, short term or long term corporate deposits, securitised debt, mortgage, bonds, obligations and securities of any description whatsoever,

(j) "lender" means any person who has given money to the Development Fund by way of loan.

(k) "local authority" means any person legally entitled to the control or management of any local fund or legally entitled to impose any cess, rate, duty, fee or tax and includes the Panchayat or the Council of the Municipality, as the case may be, and also includes the Secretary of such local authority if he has been specifically authorised by the local authority for discharging the duties and functions under this Act.

Explanation:- A person mean's and includes any authority or body corporate.

l." management agreement" means the management agreement between the Fund Manager and the Board;

(m)"net income" means in relation to any accrual period, the net income earned by the Development Fund as shown in its audited statements of account for that accrual period, net of all Costs, taxes and expenses, Fund Manager's remuneration and interest paid or payable on the borrowing by the Development Fund;

(n) "prescribed" means prescribed by rules made under this Act; and

o."State" means the State of Kerala);

p. "work" includes a survey whether incidental to any other work or not.

3. Borrowing powers of local authorities.- (1) A Local Authority may, subject to the prescribed conditions, borrow money from the Government or with the previous sanction of the Government from any other person, on the security of its funds or any portion thereof, for any of the following purposes, namely:- (i) the carrying out of any work which it is legally authorised to carry out; (ii) the giving of relief and the establishment and maintenance of relief works in times of famine, scarcity, epidemic or flood; (iii) the prevention of the outbreak or spread of any dangerous epidemic disease; (iv) any measures which may be connected with or ancillary to any purposes specified in Clauses (ii) and (iii); (v) the repayment of money previously borrowed in accordance with law: Provided that no portion of the money so borrowed shall be applied to any purpose other than that for which it was borrowed; (vi) any other purpose which the Government may specify. (2)(a) The time for the repayment of any money borrowed under this section shall in no case exceed sixty years: (b) The time for the repayment of any money borrowed before the commencement of this Act shall not, except with the express sanction of the Government, extend beyond the period of sixty years.