Section 109 in The Mumbai Municipal Corporation Act, 1888
109. Provisions as to exercise of borrowing powers
-The exercise of the powers of borrowing conferred by this Act shall be subject to the following provisions, namely :-(a)money shall not be borrowed for the execution of any work other than a permanent work including under this expression any work, of which the cost ought, in the opinion of [the [State] [The words 'the Provincial Government' were substituted for the words 'Government' by the Adaptation of Indian Laws Order in Council.] Government], to be spread over a term of years;(b)[ the sum borrowed for any purpose other than for discharging any of the obligations arising out of the transfer to the Corporation of the powers, duties, assets and liabilities of the Board of Trustees for the Improvement of the City of Bombay constituted under the City of Bombay Improvement Trust Transfer Act, 1925, [or other than for discharging any obligation arising out of the acquisition, extension, administration, operation or maintenance of the Bombay Electric Supply and Transport Undertaking,] [Clauses (b), (c) and (d) were substituted for the original clause (b) by Bombay 13 of 1933, Section 23(a).] [or other than for discharging any obligations arising out of any of the provisions contained in Chapter IX and X,] [These words and figures were inserted by Maharashtra 34 of 1973, Section 7(a).] including the balances of all the outstanding loans and debts borrowed for any of the said purposes shall not exceed in the whole [three times] [These words were substituted for the word 'double' by Maharashtra 21 of 1989, Section 17(a).] the rateable value of the premises in [Brihan Mumbai] [These words were substituted for the words 'Greater Bombay' by Maharashtra 25 of 1996, (w.e.f. 4.9.1996).] assessable, as hereinafter provided, to property taxes; and](c)[ the sum borrowed for the purpose of discharging any of the obligations arising out of the transfer to the corporation of the powers, duties, assets and liabilities of the Board of Trustees for the Improvement of the City of Bombay constituted under the City of Bombay Improvement Trust Transfer Act, 1925, including, the balances of all outstanding loans and debts borrowed by the Board of Trustees for the Improvement of the City of Bombay under City of Bombay Improvement Act, 1898, and the City of Bombay Improvement Trust Transfer Act, 1925, and by the Corporation for the purpose of discharging the aforesaid obligations, shall not at any time exceed in the whole double the rateable value of the premises in [Brihan Mumbai] [Clause (b), (c) and (d) were substituted for the original clause (b) by Bombay 13 of 1933, Section 23(a).] assessable, as hereinafter provided, to property taxes; and](d)[ the sum borrowed under clause (c) for the purpose of making good any deficit in budget estimate B framed under section 126 shall not in any year exceed twenty lakhs of rupees;] [Clauses (b), (c) and (d) were substituted for the original clause (b) by Bombay 13 of 1933, Section 23(a).] [and [This portion was inserted by Bombay 48 of 1948, Section 20.](dd)the sum borrowed for the purpose of discharging any obligation arising out of the acquisition, extension, administration, operation, or maintenance of the Bombay Electric Supply and Transport Undertaking including the balances of all the outstanding loans and debts borrowed for the said purpose, shall not at any time exceed in the whole [three times] the rateable value of the premises in [Brihan Mumbai] [These words were substituted for the words 'Greater Bombay' by Maharashtra 25 of 1996, (w.e.f. 4.9.1996).] assessable, as hereinafter provided, to property taxes; and](ddd)[ the sums borrowed for the purposes of discharging any obligations arising out of any of the provisions of Chapter IX and X, including the balances of all the outstanding loans and debts borrowed for any of the said purposes, shall not at any time exceed [on the whole thrice] [Clause (ddd) was inserted by Maharashtra 34 of 1973, Section 7(b).] the rateable value of the premises in [Brihan Mumbai] [These words were substituted for the words 'Greater Bombay' by Maharashtra 25 of 1996, (w.e,f. 4.9.1996).] assessable, as hereinafter provided, to property taxes; and](e)[ the money may be borrowed for such time, not exceeding sixty years, as the corporation, with the sanction of the [ [State] [Original clauses (c) to (g) of section 109 were re-lettered (e) to (i) by Bombay 13 of 1933, Section 23(b).] Government], determine in each case;][ [(f) the corporation shall either pay off the money so borrowed within the period sanctioned, by equal annual instalments of principal or of principal and interest, or in such other manner as may be approved by [the [State] [Original clauses (c) to (g) of section 109 were re-lettered (e) to (i) by Bombay 13 of 1933, Section 23(b).] Government], or they shall in every year set apart as a sinking fund and accumulate in the way of compound interest, by investing the same in the purchase of public securities, such sum as will, with accumulations in the way of compound interest, be sufficient, after payment of all expenses, to pay off the moneys so borrowed within the period sanctioned or within such other period as may be approved by [the [State] [The words 'the Provincial Government' were substituted for the word 'Government' by the Adaptation of Indian Laws Order in Council.] Government] ];](g)[ the Corporation may at any time apply the whole or any part of a sinking fund set apart under this section in or towards the discharge of the moneys for the repayment of which the fund has been established: [Original clauses (c) to (g) of section 109 were re-lettered (e) to (i) by Bombay 13 of 1933, Section 23(b).]Provided that they pay into the fund each time that interest would have been received by the corporation in respect of the sinking fund or the part of the sinking fund so applied, and accumulate, until the whole of the moneys borrowed are discharged, a sum equivalent to the interest which would have been so received;](h)[ the investment every year of any sum set apart as portion of the principal of a sinking fund shall be made within fifteen days after the day on which the second half-yearly payment of interest is due by the corporation in respect of the loan for repayment of which such sinking fund is established; and the reinvestment of any sum received by the corporation on account of interest on moneys appertaining to a sinking fund already invested, and the investment of any sum payable into the fund under clause [(g)] [Original clauses (c) to (g) of section 109 were re-lettered (e) to (i) by Bombay 13 of 1933, Section 23(b).] as the equivalent of interest which the corporation would have received, if the sinking fund or a part thereof had not been applied in any manner authorized by the said clause, shall be made within one month from the day on which such interest is received or from the day on which such interest would have been received, as the case may be:][Provided that during the year in which the loan for repayment of which a sinking fund has been established is due for repayment, the sum to be set apart as portion of the principal of such sinking fund and the sum received on account of interest on moneys forming part of such sinking fund may be retained by the corporation in such form as they think fit;] [This proviso was inserted by Bombay 13 of 1933, Section 23(d).](i)[ where money is borrowed for the purpose of discharging a previous loan, the time for repayment of the money so borrowed shall not, unless with the sanction of [the [State] [Original clauses (c) to (g) of section 109 were re-lettered (e) to (i) by Bombay 13 of 1933, Section 23(b).] Government] extend beyond the unexpired portion of the period for which the original loan was sanctioned and shall in no case be extended beyond the period of sixty years from the date of the original loan :][Provided that, nothing contained in this clause shall apply to any sum borrowed for the purposes of any capital works in relation to Chapters IX and X.] [This proviso was added by Maharashtra 34 of 1973, Section 7(c).]
