(2)When any loan has been raised under sub-section (1), -(a)no portion thereof shall, without the previous sanction of the State Government, be applied to any purpose other than that for which it has been raised, and(b)no portion of any loan raised for any of the purposes shall be applied to the payment of salaries or allowances to any officer or other employee of the municipality, other than those who are exclusively employed for the purpose for which the loan has been raised.Explanation. - The expression "dues under this Act" in sub-section (1) shall, for the purposes of clause (e) of that sub-section, be deemed to include the income derivable from the public utility concern referred to in that clause.
