Section 6(1) in The Local Authorities Loans Act, 1914
(1)Subject to the provisions of section 26 of the [Indian Paper Currency Act, 1910] [Repealed by the Indian Paper Currency Act, 1923 (Act 10 of 1923) which in turn has been repealed by the Reserve Bank of India Act, 1934 (Act II of 1934), see now section 31 of the latter Act.], the local Authorities mentioned in Schedule I and any other local authority to which the [Appropriate Government] [Substituted by A.O., 1937, for 'Governor-General in Council'.] may, by notification in the [Official Gazette] [Substituted by A.O., for 'Gazette of India'.] extend the provisions of this section, may, with the previous sanction of the [Appropriate Government] [Substituted by A.O., 1937, for 'Governor-General in Council'.], borrow money by means of the issue of bills or promissory notes payable within any period, not exceeding twelve months, for any purpose for which such local authority may lawfully borrow money under any law for the time being in force :Provided that the amount of the bills or promissory notes which may be so issued, shall not exceed, when the amount of the other moneys for the time being borrowed by such local authority is taken into account, the total amount which such local authority is empowered by law to borrow.
