Section 174 in The Madurai City Municipal Corporation Act, 1971
174. Power of corporation to borrow money.
(1)The council may, in pursuance of any resolution passed at a special meeting, borrow by way of debenture or otherwise on the security of all or any of the taxes, duties, fees and dues authorized by or under this Act, any sums of money which may be required -(a)for the construction of works; or(b)for the acquisition of lands and buildings; or(c)for slum clearance and construction of tenements; or(d)to pay off any debt due to the Government; or(e)to repay a loan previously raised under this Act or other Act previously in force:Provided that -(i)no loan shall be raised without the previous sanction of the Government; and(ii)the amount of the loan, the rate of interest and the terms including the date of floatation, the time and method of repayments and the like shall be subject to the approval of the Government.(2)When any sum of money has been borrowed under sub-section (1)-(a)no portion thereof shall, without the previous sanction of the Government, be applied to any purpose other than that for which it was borrowed, and(b)no portion of any sum of money borrowed under clause (a) or clause (c) of sub-section (1) shall be applied to the payment of salaries or allowances to any municipal officers or servants other than those exclusively employed upon the works for the construction of which the money was borrowed.
