Section 154(1) in Uttar Pradesh Municipal Corporation Act, 1959
(1)The Corporation may, with the previous sanction of the State Government and subject to the provisions of Section 31 of the Reserve Bank of India Act, 1934 from time to time, borrow or re-borrow and take up at interest by the issue of debentures or otherwise on the security of any immovable property vested in the Corporation or proposed to be acquired by it under this Act or of all or any taxes, duties, tolls, cesses, fees and dues which it is authorised to levy for the purposes of this Act, or of all or any of those securities, any sum necessary for the purpose of-(a)defraying any costs, charges or expenses, incurred by it in the execution of this Act;(b)for discharging any loan contracted under this Act or any other loan or debt for the repayment of which the Corporation is liable;(c)generally for carrying out the purposes of this Act, including the advance of loans authorized thereunder:Provided that-(i)no loan shall be raised for the execution of any work other than a permanent work which expression shall include any work of which the cost should, in the opinion of the State Government, be spread over a term of years;(ii)no loan shall be raised unless the State Government has approved the purpose and amount of the loan, the rate of interest and other terms thereof including the date of flotation and the period and method of repayment;(iii)the period within which the loan is to be repaid shall in no case exceed thirty years.
