Section 3(2) in The Local Authorities Loans Act, 1914
(2)Nothing in this section shall be deemed to authorize any local authority -(a)to borrow or spend money for any purpose for which, under the law for the time being in force, it is not authorized to apply its funds; or(b)to borrow money by means of the issue of bills or promissory notes payable within any period not exceeding twelve months.
