(1)Notwithstanding anything to the contrary contained in this Chapter the Municipality may consolidate all or any of its loans and for the purpose may invite tenders for a new loan (to be called the Municipal consolidated loan 19.... ) and invite the holders of Municipal debentures to exchange their debentures for scrip of such loan.(2)The term of any such consolidated loan and the form of its scrip and the rates at which exchange into such consolidated loan shall be permitted shall be subject to the prior approval of the Government.(3)The period for the extinction of any such consolidated loan shall not, without the sanction of the Government, extend beyond the farthest date within which any of the loans to be consolidated would be otherwise repayable.(4)The Municipality shall provide for the repayment of any such consolidated loan by a sinking fund in the manner laid down in section 303 having regard to the amount transferred to such sinking fund under section 308.
