181D. [ Procedure for inter-Panchayats lending. [Inserted by Tamil Nadu Panchayats (Second Amendment) Act, 2000 (Tamil Nadu Act 23 of 2000).]
(1)Any Panchayat may raise loan from any other Panchayat and any Panchayat may sanction loan to another Panchayat to carry out any of its statutory functions or for the creation of capital assets or income generating assets, with the prior sanction of the Inspector.(2)The procedure for the receipt, utilisation and repayment of the loan under this section and section 181-C shall be, subject to such terms and conditions, as may be agreed upon by the Financial Institution or agency or bank or lending Panchayat, as the case may be, and the borrowing Panchayat. Every Pan-chayat shall maintain, in respect of the loan, such books of accounts, as may be prescribed.(3)Every Panchayat shall utilise the loans only for the purposes for which such loans are borrowed.]
