299. [ Limitation on borrowing power. [Substituted by Act 14 of 1999, w.e.f. 24-3-1999.]
(1)Notwithstanding anything contained in the forgoing provisions the borrowing powers of a Municipality shall be as prescribed, in relation to the total annual receipts of that Municipality.Provided that nothing contained in this section shall prevent the issuance of Revenue Bonds by the Municipality, secured by pledge of the revenue stream from the project and strengthened on the basis of escrow account or credit enhancement conditions:Provided further that the short fall in the escrow account would be made good from the grants due from Government intimation by the trustees.]
