The Short Title of this Act is “The Town Districts Act, 1906”; and it shall form part of and be read together with “The Town Districts Act, 1881” (hereinafter referred to as “the principal Act”).

Notwithstanding any Act wherein it is provided that no local body or authority other than the County Council shall, within the limit of any county, be created or exercise any jurisdiction or authority over any roads or over or in relation to any matter or thing in respect of which jurisdiction is conferred upon a County Council under the principal Act, it is hereby declared that such provision shall not prevent the constitution of any town district by the Governor under the authority of “The Town Districts Act, 1904.”

Notwithstanding anything in the principal Act or “The Counties Act, 1886,” every town district having a population of not less than five hundred shall, for the purposes of “The Counties Act, 1886,” be deemed not to form part of the county within which it is included, in the case of an existing town district as from the date of the coming into operation of this Act, and in the case of a town district hereafter constituted as from the date of such constitution; but the entity of the Corporation of such county shall not thereby be destroyed.

Every main road or county road, or portion of any such road respectively, within the limits of such town district shall be under the control of the Town Board, who shall bear the cost of making and maintaining the same.

The second paragraph of section ten of the principal Act, commencing “A town district,” section thirty-two of the same Act, and section two hundred and fifty-one of “The Counties Act, 1886,” are hereby repealed.

The Board of every such town district, and the local authority of the district of which such town district was a part, shall agree together and determine as to the following matters:—

Every such agreement shall be in writing, and shall be final as between the local authority and the town district.

If no such agreement is made within two months after the coming into operation of this Act (or, in the case of a town district hereafter established, within two months after the first election of the Town Board), the Governor may, upon the application of either the Board or the local authority, appoint any fit person or persons to hold an inquiry and make an award as to the several matters mentioned in subsection one hereof, and their award thereon shall be final.

All property, real or personal, allotted to the town district by any such agreement or award shall become vested in the Board thereof, in the case of an existing town district as from the date of the coming into operation of this Act, and in the case of a town district hereafter constituted as from the date of such constitution.

Nothing in this Act shall affect the rights or interests of any bondholder or other creditor of any district from which a town district has been taken, or shall relieve the ratepayers for the time being in the area comprised in such town district from their liability to pay any special rate made under the provisions of any Act as a security for any loan.

On the constitution of any new town district the Governor may make all appointments and do all things necessary for the due conduct of the first election of members of the Board and for the holding of their first meeting.

This section shall be deemed to have been in operation as from the passing of “The Town Districts Act, 1904.”

Section seven of “The Town Districts Act 1881 Amendment Act, 1883,” is hereby repealed.

Where a town district becomes a borough under “The Municipal Corporations Act, 1900,” the following provisions shall apply:—

Sections forty-six and forty-seven of the principal Act are hereby repealed.

The Town Board may, in anticipation of its current revenue, from time to time borrow moneys from the bank by way of overdraft; but the amount of such overdraft shall never at any time exceed the total amount of the income of the Board for the year ending the thirty-first day of March previous, not including in such income any moneys received by way of grant from the General Government, or any moneys borrowed, or any moneys received for separate rates or special rates.