Section 109 in The Maharashtra Municipal Corporations Act, 1949
109. Powers of Corporation to borrow money. - (1) The Corporation may, with the previous sanction of the [State] Government, 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 the taxes or of any tax which it is authorised to levy for the purposes of this Act or the Transport Undertaking, or of all or any of those securities any sum necessary for the purpose of -
(a)defraying any costs, charges or expenses, incurred or to be 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 authorised 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 terms on and the method by which the loan is to be raised and repaid;(iii)the period within which the loan is to be repaid shall in no case exceed sixty years and, where a loan is raised for the repayment of a previous loan, the period within which the subsequent loan is to be repaid shall not extend beyond the unexpired portion of the period fixed for the repayment of the original loan, unless the [State] Government so directs, and shall in no case extend beyond the period of sixty years from the date on which the original loan was raised.(2)When any sum of money has been borrowed or re-borrowed 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 was borrowed; and(b)no portion of any sum of money borrowed or re-borrowed for the execution of any work shall be applied to the payment of salaries or allowances of any municipal officers or servants other than those who are exclusively employed upon the work for the construction of which the money was borrowed:Provided that such share of the cost on account of the salaries and allowances of municipal officers or servants employed in part upon the preparation of plans and estimates or the construction or supervision of or upon the maintenance of the account of such work as the Standing Committee may fix may be paid out of the sum so borrowed or re-borrowed.[109A. Restrictions on utilisation of funds created by Corporation. - Notwithstanding anything contained in section 109, except with the prior approval of the State Government, neither any internal loan shall be taken by the Corporation from any of the funds created by the Corporation nor shall any utilisation of such funds for any purposes other than the purposes for which the funds are created be made by the Corporation.]
