(1) The Council, for the purpose of the immediate payment for any works the cost whereof is payable by any owners of premises, may from time to time borrow, at interest not exceeding five per centum per annum, any sums of money, not exceeding in the whole the sum of ten thousand dollars, upon the security of any instalments payable to it under this Act; but no money shall be borrowed under the authority of this Act which shall produce to the lender a higher rate of interest than five dollars per centum per annum. All moneys borrowed under this section shall be devoted exclusively to the purposes authorised by this Act.
(2) Any instrument securing the repayment of any such sum and interest may be in such form and may contain such covenants by the Corporation (including covenants for the repayment of such sum and interest) and such powers and provisions as the Council shall think fit.
(3) The resolution to borrow any such sum shall be passed by way of special order under The Municipal Corporations Act 1900, but it shall not be necessary to take any poll under The Local Bodies' Loans Act 1901, or otherwise in connection with such borrowing.
(4) The Council shall apply all such instalments upon the security of which it borrows any money as aforesaid towards repayment of such money and the interest thereon, until such money and interest shall be paid and satisfied.
(5) A person lending any sum of money to the Council upon the security of any instalments as aforesaid shall not be concerned to inquire as to the necessity or propriety of the transaction, or to see to the application of the money so lent.
“ten thousand dollars” and
“five dollars”, in subsection (1) were substituted, as from 10 July 1967, for the words
“five thousand pounds” and
“five pounds” respectively pursuant to section 7(1) and (2) Decimal Currency Act 1964 (1964 No 27).