Section 109(1) in The Gujarat Provincial Municipal Corporations Act, 1949
(1)The Corporation may, with the previous sanction of the [State] [This words, was substituted for the word 'Provincial' by the adaptation of Laws Order, 1950.] Government, from time to time, borrow or re-borrow and take up at interest by the issue of debentures or otherwise on the security of any immovable property vested in the Corporation on or proposed to be acquired by it under this Act or of all the taxes or of any tax which it is authorised to levy for the purposes of this Act or the Transport Undertaking, or of all or any of those securities any sum necessary for the purpose of-(a)defraying any costs, charges or expenses, incurred or to be incurred by it in the execution of this Act;(b)for discharging any loan contracted under this Act or any other loan or debt for the repayment of which the Corporation is liable;(c)generally for carrying out the purposes of this Act, including the advance of loans authorised thereunder:Provided that,-(i)no loan shall be raised for the execution of any work other than a permanent work, which expression shall include any work of which the cost should, in the opinion of the [State] [This words was substituted for the word 'Provincial' by the adaptation of Laws Order, 1950.] Government, be spread over a term of years;(ii)no loan shall be raised unless the [State] [This words was substituted for the word 'Provincial' by the adaptation of Laws Order, 1950.] Government has approved the terms on and the method by which the loan is to he raised and repaid;(iii)the period within which the loan is to be repaid shall in no case exceed sixty years and, where a loan is raised for the repayment of a previous loan, the period within which the subsequent loan is to be repaid shall not extend beyond the unexpired portion of the period fixed for the repayment of the original loan, unless the [State] [This words was substituted for the word 'Provincial' by the adaptation of Laws Order, 1950.] Government so directs, and shall in no case extend beyond the period of sixty years from the date on which the original loan was raised.
