Section 44 in Tamil Nadu Town and Country Planning Act, 1971
44. Power of the new town development authority to borrow and lend.
(1)Subject to such conditions and limitations as may be prescribed and with the previous approval of the Government, the new town development authority may, for the promotion and execution of works in the new town development plan made under this Act, borrow money from the public or from any corporation owned or controlled by any State Government or by the Central Government.(2)Whenever the borrowing of any sum of money has been approved by the Government, the new town development authority may, instead of borrowing such sum or any part thereof from the public, take credit from any bank or any corporation owned or controlled by any State Government or by the Central Government on a cash account to be kept in the name of the new town development authority to the extent of such sum or part thereof, and may, with the previous sanction of the Government, grant mortgages of all or any of the properties vested in the new town development authority by way of security for such credit(3)Subject to such conditions and limitations as may be prescribed and with the previous approval of the Government, the new town development authority may, for the promotion and execution of works in the new town development plan made under this Act, enter into financial arrangements with any bank or other financial institutions approved by the Government or with the life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (Central Act XXXI of 1956).(4)Subject to the provisions of this Act and to such conditions and limitations as may be prescribed, the new town development authority may, out of its funds, grant loans and advances on such terms and conditions as it may determine, to any co-operative society registered or deemed to be registered under the law relating to co-operative societies for the time being in force in the State of Tamil Nadu or to any institution or person for the construction of houses and buildings or other uses.
