(1)Municipality may, with the prior permission of the State Government, obtain loan from any public financial institution or any nationalised bank or such other lending institution as the State Government may approve in this behalf, and the State Government may if it considers so necessary, stand as the guaranted for payment.(2)The State Government may require the Municipality to observe such financial discipline as the State Government may think fit and proper in doing so, the State Government-may prescribe different sets of rules for observance by different Municipalities.
