Section 174(1) in The Madurai City Municipal Corporation Act, 1971
(1)The council may, in pursuance of any resolution passed at a special meeting, borrow by way of debenture or otherwise on the security of all or any of the taxes, duties, fees and dues authorized by or under this Act, any sums of money which may be required -(a)for the construction of works; or(b)for the acquisition of lands and buildings; or(c)for slum clearance and construction of tenements; or(d)to pay off any debt due to the Government; or(e)to repay a loan previously raised under this Act or other Act previously in force:Provided that -(i)no loan shall be raised without the previous sanction of the Government; and(ii)the amount of the loan, the rate of interest and the terms including the date of floatation, the time and method of repayments and the like shall be subject to the approval of the Government.
