Section 151 in Chennai City Municipal Corporation Act, 1919
151. Power of corporation to consolidate loans.
(1)Notwithstanding anything to the contrary contained in this Chapter, the corporation may consolidate all or any of their loans and for that purpose may invite tenders for a new loan (to be called the municipal consolidated loan, 20..) and invite the holders of municipal debentures to exchange their debentures for scrip of such loan.(2)The terms of any such consolidated loan and the form of its scrip and the rates at which exchange into such consolidated loan shall be permitted shall be subject to the prior approval of the [State Government] [The words 'Provincial Government' were substituted for the words 'Governor-General in Council' by the Adaptation Order of 1937 and the word 'State' was substituted for 'Provincial' by the Adaptation Order of 1950.],(3)The period for the extinction of any such consolidated loan shall not without the sanction of the [State Government] [The words 'Provincial Government' were substituted for the words 'Governor-General in Council' by the Adaptation Order of 1937 and the word 'State' was substituted for 'Provincial' by the Adaptation Order of 1950.] extend beyond the farthest date within which any of the loans to be consolidated would be otherwise repayable.(4)The corporation shall provide for the repayment of any such consolidated loan by a sinking fund in the manner laid down in section 148 having regard to the amount transferred to such sinking fund under section 149.
