Whereas the Nelson City Council (hereinafter called the Council) was authorised by Order in Council made on 10 June 1937, as varied by Order in Council made on 13 July 1938 pursuant to section 11 of the Local Government Loans Board Act 1926, to raise a loan of 88,000 pounds known as the Water-supply Loan, 1937, for the purpose of constructing headworks, tunnel, main pipeline, and other necessary works for the supply of water from the Roding River, making the necessary land purchases, and improving and extending the city reticulation upon certain terms and conditions, one of such conditions being that no money should be borrowed under such authority after the expiration of 2 years from the date thereof:
And whereas the Council, by resolution made on 28 July 1938, resolved to raise the said loan, and, pursuant to such resolution, arranged to raise the said loan by instalments as required:
And whereas the authority conferred by such first-mentioned Order in Council expired on 10 June 1939:
And whereas by Order in Council made on 26 July 1939 a fresh consent was issued authorising the Council to raise the balance then outstanding:
And whereas after 10 June 1939, but before 26 July 1939, the Council received instalments amounting to 2,600 pounds in respect of the said loan:
And whereas the Council had no authority to receive the said instalments and it is desirable that the raising of such sum by the Council as aforesaid should be validated:
Be it therefore enacted as follows:
The action of the Council in raising the said sum of 2,600 pounds of the Water-supply Loan, 1937 is hereby validated, and the said moneys shall be deemed to have been lawfully borrowed and the securities given in respect thereof to have been lawfully issued.