This Act may be cited as the Nelson City Drainage Loan and Empowering Act, 1910.

The Nelson City Council may raise a special loan of not exceeding four thousand pounds under the Local Bodies’ Loans Act, 1908, for the purpose of completing its drainage system.

The said Council may also raise, in manner aforesaid, a special loan of not exceeding five thousand pounds for the purpose of making advances to owners of private property within the City of Nelson, to enable them to connect their properties with the city drainage system.

The said Council and any such owner may agree that the moneys so advanced shall be repayable in one amount at a fixed time, not being more than five years from the date of the advance, with interest at a rate not exceeding six per centum per annum, or by instalments extending over not more than ten years with interest at the rate aforesaid.

The amount of each such repayment, whether by way of single amount or instalment, shall be deemed to be and be recoverable as a rate.

The provisions of paragraphs (a), (b), and (c) of section two hundred and nineteen and section two hundred and twenty of the Municipal Corporations Act, 1908, shall extend and apply to the case of all moneys advanced under this present section, whether repayable in single sums or by instalments.

Moneys so advanced may when repaid be advanced to other owners for the purposes aforesaid, and so on from time to time.

No money shall be borrowed under the authority of this Act which shall produce to the lender a higher rate of interest than five per centum per annum.

All such moneys when ultimately repaid to the Council shall be applied in repayment of the said special loan of five thousand pounds.