(1) If the owner of any house or building in the Borough applies to the Council for assistance for the purpose of carrying out works for the reconstruction, enlargement, repair, or improvement thereof, and the Council is of opinion that only after the works are carried out the house or building would be in all respects fit for habitation as a house, and that the area in which the house or building is situated is in regard to housing accommodation such as to make it desirable that the work should be carried out, and if the owner of such property and the mortgagees thereof are unable, in the opinion of the Council, to provide the moneys necessary to carry out such work, the Council may, with the consent in writing of the mortgagees, advance to the owner the whole or any part of such sum as may be necessary to defray the cost of the work and any expenses incidental thereto.
(2) Before the works are commenced full particulars of the works and plans and specifications thereof shall be submitted to the Council for its approval, and before any advance is made the Council shall satisfy itself that the works in respect of which the advance is to be made have been carried out in a satisfactory and efficient manner.
(3) For the purposes of this section owner, in respect of any property, means the person for the time being entitled to receive the rack-rent thereof, or who would be so entitled if the same were let to a tenant at a rack-rent.
(4) The Council and the owner may agree that the amount of any advance shall be repayable in one sum at a fixed time, with interest at a rate to be fixed by the Council at the time when the advance is made, or by instalments extending over a number of years, with interest at a rate fixed as aforesaid. Such agreement may contain any incidental provisions and may provide for the earlier payment of instalments, or any of them, on terms to be mentioned in the agreement:
provided that where an agreement makes no provision as aforesaid for early payment of instalments the Council shall accept the whole of the unpaid instalments at any time when the same is tendered, and for the purpose of any such tender interest shall be calculated and paid only up to and including the day of such tender.
(5) Such agreement may, where the moneys are repayable in one amount, contain provisions for securing the repayment thereof, and where the moneys are repayable by instalments each such instalment shall for all purposes be deemed to be a rate subject, nevertheless, to the following conditions:
(b) a separate rate-book shall be kept by the Collector of Rates to the Council in which particulars of such instalments (distinguishing capital and interest) and of the lands in respect whereof they are payable, and of the dates for payment thereof, and all the names of persons paying the same shall be entered; and such book shall be prima facie evidence of the correctness of its contents.
(6) The capital moneys advanced by the Council under this section may, when repaid, be advanced to other owners for the purposes aforesaid and subject thereto all such capital moneys shall be applied in or towards the repayment of any special loan raised as hereinafter mentioned, either by payment into the sinking fund in addition to the annual sinking fund payments required, if any, or in such other manner as the Council, with the sanction of the Audit Office, determines.
(7) Interest-moneys on any advances shall be applied in or towards payment of the interest or other annual charges in respect of the special loan aforesaid.
(8) For the purpose of providing funds out of which advances as aforesaid may be made the Council may borrow moneys by way of special loan, not exceeding in the aggregate 1,000 pounds under the Local Bodies' Loans Act 1926, by special order, and without taking the steps prescribed in sections 9 to 13 of that Act.
(9) All moneys payable to the Council by the owner of any property in respect of any such advances shall be a charge on that property.