This Act may be cited as the Municipal Corporations Amendment Act, 1928, and shall be read together with and deemed part of the Municipal Corporations Act, 1920 (hereinafter referred to as the principal Act).

Section two of the principal Act is hereby amended by inserting, before the definition of the term “Occupier,” the following definition:—

Section twenty-three of the principal Act is hereby repealed.

Section forty of the principal Act is hereby amended by repealing paragraph (h), and substituting the following:—

Section six of the Municipal Corporations Amendment Act, 1921 22, is hereby consequentially repealed.

Subsection one of section fifty-seven of the principal Act is hereby consequentially amended by omitting the words “neither a director nor,” and substituting the word “not.”

The first general election of Councillors to be held after the passing of this Act shall be held on the first Wednesday in May, nineteen hundred and twenty-nine, and on the same day in every succeeding second year thereafter a fresh general election of Councillors shall be held.

This section is in substitution for section forty-seven of the principal Act, and that section is hereby accordingly repealed.

Section twenty-four of the principal Act is hereby consequentially amended as follows:—

If at any elections of Mayor and of a Councillor or Councillors held on the same day any person is declared to be elected both to be the Mayor and a Councillor of any borough, and is not deprived of either such office pursuant to a recount under section thirty-three of the Local Elections and Polls Act, 1925, or on a petition under section fifty-eight of that Act, he shall be deemed to have vacated his office as a Councillor, and thereupon the Returning Officer shall, notwithstanding anything to the contrary in any Act, give an amended public declaration of the result of the poll by declaring to be elected instead of such person the unsuccessful candidate who received the highest number of votes at the poll.

In every such case as aforesaid the period of fourteen days mentioned in section fifty-eight of the Local Elections and Polls Act, 1925, shall with respect to the person declared by such amended declaration to be elected commence to run as from the date of such amended declaration.

In any case where there is no other candidate who may lawfully be declared to be elected by means of an amended declaration as aforesaid, an extraordinary vacancy in the office of Councillor shall be deemed to have occurred.

Notwithstanding anything to the contrary in the principal Act or in any rule of law, a Council may enter into an agreement in writing with any person whom it proposes to appoint, or who has been appointed, an officer or servant of the Council to the effect that such person shall not, save as provided in such agreement, be removed from office during such period (not exceeding three years from the date of his appointment or the date of such agreement, as the case may be) as is specified in such agreement.

Any such agreement may from time to time be renewed for any period not exceeding three years at any one time from the date of such renewal.

Where in any borough land of an area of not less than three acres is occupied solely for farming purposes, and is in the opinion of the Council not fit for subdivision for building purposes or not likely to be required within any reasonable period for building purposes, and the Council passes a resolution to that effect, the Valuer-General shall (if he agrees with the decision of the Council that the land is not fit for subdivision or not likely to be required within any reasonable period for building purposes as aforesaid) make reduction in the assessment of the capital value and of the unimproved value of such land, and of the several interests therein, to the extent by which in his opinion such value is reduced by reason of the purposes to which such land is applied.

Such valuation when made shall, notwithstanding anything to the contrary in any Act, be the valuation on which all borough rates shall be based, but shall not be valid or effectual for any other purpose.

If at any time the Council is of opinion that any such resolution should be rescinded, the Council may, with the previous approval in writing of the Valuer-General, rescind any such resolution, and the land affected by the rescinded resolution shall be forthwith revalued by the Valuer-General under the provisions of the Valuation of Land Act, 1925.

The foregoing provisions of this section shall, with the necessary modifications, apply to town districts not forming part of any county.

The Rangiora Borough Valuation of Farm Lands for Rating Purposes Act, 1924, the Mataura Borough Valuation of Farm Lands for Rating Purposes Act, 1925, and section ten of the Wellington City Empowering and Special Rates Consolidation Act, 1923, are hereby repealed.

A Council may, pursuant to a resolution in that behalf, establish an Imprest Account, which shall, as the Council may determine, be kept in the Post Office Savings-bank or in any other bank within the meaning of the Banking Act, 1908.

The Imprest Account may be held jointly in the names of and be operated on by the Treasurer and one other person to be appointed in that behalf by the Council, or may with the express approval in writing of the Audit Office, but not otherwise, be in the sole name of and be operated on by the Treasurer or other approved officer of the Council. Where the Imprest Account is held jointly in the names of the Treasurer and of one other person as aforesaid, such last-mentioned person shall be either a responsible officer of the Council or a member of the Council.

The Council shall from time to time by resolution fix the maximum amount that may be held at any time in the Imprest Account, not exceeding seventy - five pounds in any case where the Imprest Account may be operated on by one person acting alone, and not exceeding such amount as the Audit Office may approve in any other case.

Moneys in the Imprest Account shall be available only for the payment of casual wages and of emergency expenditure. A statement of all payments made from the Imprest Account shall be submitted to the Council for approval at its first ordinary meeting thereafter. The payment of moneys out of the Imprest Account for any purpose not hereby authorized shall be deemed to be the misappropriation of the funds of the Council.

The provisions of sections seventy-four and seventy-five of the principal Act shall be read subject to the provisions of this section.

Section eighty-two of the principal Act is hereby amended by repealing subsection four, and substituting the following subsections:—

Notwithstanding anything to the contrary in the principal Act, a Council may with the consent of the Governor-General in Council make and levy water rates and charges in respect both of the ordinary as well as of any extraordinary supply, according to the quantity of water consumed by any person receiving the same as measured by meter, at such rates or charges as may from time to time be fixed by any by-law of the Council in that behalf or as may be agreed on with any such person; and all water rates or charges so payable shall for all purposes be deemed to be separate rates.

Subsection three of section eighty-nine of the principal Act is hereby repealed, and the following substituted therefor:—

A Council may from time to time out of its General Account, or out of the separate account kept in respect of any trading undertaking of the Council, pay by way of subsidy such sums as it thinks fit to the funds of any sick, death, or funeral benefit society or other like institution established by its employees, or any section of them the benefits of which are confined to such employees and their dependants.

This section shall be deemed to have come into force on the first day of April, nineteen hundred and twenty-eight.

With respect to petitions presented after the first day of January, nineteen hundred and twenty-nine, to the Governor-General under the principal Act, or to the Council under the principal Act or any other Act, the following provisions, in addition to any other provisions applicable thereto, shall apply:—

Every Commission under section one hundred and thirty-one or section one hundred and thirty-two of the principal Act may make an order pursuant to section eleven of the Commissions of Inquiry Act, 1908, as to payment of the costs of the inquiry; and where the inquiry is with respect to the proposed constitution of a new borough may if it thinks fit, in exercise of the power conferred by the said section, order that the whole or any portion of such costs shall, if such new borough is constituted, be paid by the Council thereof, and that in any other case the amount so ordered to be paid shall be paid by such of the parties to the inquiry and in such proportions as are specified in the order.

The cost of taking any poll under either of the said sections shall be defrayed by such of the local authorities concerned, or by such persons being parties to the inquiry preceding the poll, and in such proportions as the Governor-General by Order in Council directs.

Any amount payable by any local authority or other party to an inquiry pursuant to an Order in Council under the last preceding subsection shall constitute a debt due to the Crown, and all moneys so received shall, without further appropriation than this section, be applied in payment of the cost of taking such poll as aforesaid.

Subsection two of section one hundred and thirty-one and paragraph (h) of subsection one of section one hundred and thirty-two of the principal Act are hereby consequentially repealed.

Section one hundred and thirty-two of the principal Act is hereby declared to authorize and always to have authorized in the manner therein provided the exclusion of any area from a borough and its inclusion in an adjoining borough.

The power conferred on the Governor-General by section one hundred and thirty-four of the principal Act to alter the boundaries of a borough by including therein any land in respect of which there are no electors is hereby extended to enable him by Proclamation, on the petition publicly notified of the Council of a borough, to exclude from such borough any land therein in respect of which there are no electors, and to include such land in another borough adjacent thereto or in any other adjoining district.

Such Proclamation may declare that the land thereby excluded from the borough shall be included in any particular subdivision of such adjoining district.

Subsection two of section one hundred and forty of the principal Act is hereby amended by omitting the words “Governor-General in Council,” and substituting the words “Proclamation effecting the union or by a subsequent Proclamation in that behalf.”

Section one hundred and forty-four of the principal Act is hereby amended as follows:—

Save as provided in subsection three hereof, a Council, pursuant to a special order in that behalf, may sell any land vested in the Corporation, or exchange any such land, and in respect of any such exchange may give or receive any money for equality of exchange.

Where any land so sold or exchanged was at the time of such sale or exchange vested in the Corporation in trust for any particular purpose or purposes, whether by or pursuant to any Act or any deed of trust or otherwise howsoever, all moneys received by the Council upon such sale or exchange shall be applied to the purchase of other lands to be held for the same purposes as affected the lands disposed of, and all lands received in exchange shall be held for the purposes that affected the land given in exchange.

Nothing in this section shall be deemed—

This section is in substitution for section one hundred and fifty-one of the principal Act, and that section is hereby accordingly repealed.

The Fourth Schedule to the principal Act is hereby amended as follows:—

Section one hundred and eighty-nine of the principal Act is hereby amended as follows:—

Section two hundred of the principal Act is hereby amended by repealing subsection two, and substituting the following subsection:—

Subject to the provisions of section two hundred of the principal Act as amended by the last preceding section, a Council or, as the case may be, the Town Board of a town district not forming part of any county, may by special order grant to any person, firm, or company an easement or other right for such period not exceeding fifty years, and on such terms and conditions as the Council or Board thinks fit, authorizing such person, firm, or company to lay conduit-pipes for petroleum in the borough or town district under or along any street or other public highway, or (with the consent of the owners) along any private way; but no such grant shall be to the exclusion of like grants to any other person, firm, or company.

The grant of any such right or easement shall be subject to the payment of such rent, and to the observance of such conditions as to size, construction, repair, and maintenance of such conduitpipes, and as to repair of any street, public highway, or private way under or along which they are laid, as the Council or Board thinks fit.

A Council may with the consent of the local authority of any adjoining district extend its drainage-system into any area of such district; and at the request of the owner of any premises in such area, and on such terms and conditions, including the payment by the owner of an annual charge in respect of the service rendered by such connection, as the Council determines, connect such premises with such system; and for such purpose all the provisions of the principal Act relating to drainage, and all the powers given to the Council thereby, shall apply equally to all places, persons, and things in such area as to the same within the borough.

The Council may at any time on giving three months’ notice in writing of intention so to do disconnect any such premises from its drainage-system without being liable to pay any compensation in respect thereof.

Where any such area becomes part of the borough at a time when a drainage rate pursuant to section ninety of the principal Act is not charged within the borough, the Council may, until it makes and levies such a drainage rate, continue the service rendered by such connection at such charge as was in force immediately before the inclusion of the area in the borough.

The purposes for which moneys may be advanced to owners of private property under section two hundred and twenty-eight of the principal Act are hereby declared to include and always to have included the provision of all fittings necessary to enable the proper disposal of waste-waters and sewage matter.

All moneys payable to a Council by the owner of any property for or in respect of any work, materials or things executed, provided, or done by the Council on or to such property in relation to drainage or sanitation under any power in that behalf shall be a charge on that property.

Where any area to which water is supplied by the Council of a borough pursuant to the authority conferred by section two hundred and forty-seven of the principal Act becomes part of the borough at a time when a water rate pursuant to section eighty-two of the principal Act in respect of the ordinary supply is not charged within the borough, the Council may, until it makes and levies such a water rate, continue to supply water to the inhabitants of such area at such rate or charges as were in force immediately before its inclusion in the borough.

Section two hundred and sixty-six and subsection three of section three hundred and eight of the principal Act are hereby respectively amended by adding thereto the words “at any time after the thirty-first day of March next following the date of the constitution of the Fire Board of such fire district.”

Where the total amount of any advance hereafter made to the occupier of any premises, pursuant to section two hundred and eighty-three of the principal Act, in respect of the cost of installing gas or electricity therein, together with any amount then outstanding in respect of prior advances for a like purpose, whether such prior advances were made before or after the passing of this Act, exceeds thirty pounds, the amount of such advance shall not be a charge on the land upon which the premises are situated, unless prior to such installation consent in writing is given thereto by or on behalf of the owner (if the occupier is not the owner), and, where the land is subject to any registered mortgage, is also given by or on behalf of the mortgagee or mortgagees.

Subsection four of the said section two hundred and eighty-three, as appearing in section fifteen of the Municipal Corporations Amendment Act, 1921–22, shall be read subject to the foregoing provisions of this section.

The power conferred on a Council by subsection three of section three hundred and two of the principal Act to make payments in respect of musical entertainments for the purpose of the enjoyment or recreation of the public is hereby extended to enable payments to be made to a person or persons for supplying musical entertainment on any steamers or other vessels forming part of any ferry service established by the Council, or at any terminus of such service.

Any such payment as aforesaid may be made by the Council either out of its general funds or out of the separate account kept in connection with such ferry service.

A Council having the management and control of any public reserve not vested in the Corporation of the borough may borrow moneys by way of special loan under the Local Bodies’ Loans Act, 1926, and expend the proceeds of such loan on the improvement and development of such reserve.

Section three hundred and three of the principal Act is hereby amended by inserting, after the word “creches,” the words “and dental clinics.”

A Council may from time to time out of its General Account make such grants as it thinks fit, not exceeding one hundred pounds in any one year, for the purposes of the Workers’ Educational Association.

A Council may from time to time out of its General Account contribute such sums as it thinks fit towards the maintenance or improvement of any cemetery under the Cemeteries Act, 1908, not vested in the Corporation of the Borough, whether such cemetery is situated within or outside the boundaries of the borough.

Where pursuant to any authority conferred on it by the principal Act or any other Act the Council erects any building it may make provision therein for shops or offices, and may let any such shop or office at such rental, for such term, upon such conditions, and to such person or persons as it thinks fit:

Provided that it shall not be lawful for the Council to make provision as aforesaid for shops or offices to such an extent as to impair the building for use for the purpose for which it was authorized to be erected, or otherwise to make its principal purpose the provision of shops or offices.

This section shall apply to Town Boards.

Subsection two of section three hundred and twelve of the principal Act is hereby amended by omitting the words “the Supreme Court,” and substituting the words “a Magistrate’s Court.”

Subclause one of clause four of the Eleventh Schedule to the principal Act is hereby amended by omitting the words “the Supreme Court,” and substituting the words “a Magistrate’s Court.”

Notwithstanding anything to the contrary in Part XXXII of, or in the Eleventh Schedule to, the principal Act, a Council may—

Before refusing any license pursuant to the authority conferred by paragraph (a) of the last preceding subsection the Council shall give to the applicant an opportunity to be heard before a committee of the Council.

Every person aggrieved at the refusal of the Council to grant a license, or any licensee aggrieved at the cancellation or suspension of his license, pursuant to the authority conferred by this section, shall have the same right of appeal as is given in the said Eleventh Schedule to a person to whom a license is refused, and a Magistrate’s Court shall have the power to direct the Council to issue a license or to revoke any such cancellation or suspension.

The powers conferred by this section are in addition to, and not in substitution for, the powers conferred on a Council by Part XXXII and the Eleventh Schedule to the principal Act.

Section three hundred and thirty-three of the principal Act is hereby amended by adding thereto the words “and for the construction of streets on land used for the erection of workers’ dwellings.”

The power conferred on a Council by section three hundred and fifty-four of the principal Act to make by-laws with respect to the storage of dangerous goods is hereby extended to enable a Council to make by-laws defining areas in the borough within which such goods may be stored in bulk, and prohibiting such storage elsewhere than in such areas.

Section three hundred and fifty-four of the principal Act is hereby amended by adding thereto the following paragraph:—

Section three hundred and sixty-seven of the principal Act is hereby amended by omitting the words “or special district.”

For the purposes of this section and of sections forty-four to fifty-nine hereof and of Part XIII of the principal Act “trading undertaking” means any tramway service, ferry service, or other service for the conveyance of passengers or goods, any gas or electric-light undertaking, any power-supply undertaking, and includes such other undertakings as may from time to time be declared by the Governor-General in Council to be trading undertakings.

Nothing in sections forty-four to fifty-nine hereof relating to fire-insurance funds, accident funds, depreciation funds, and reserve funds respectively in connection with any trading undertaking shall apply with respect to any trading undertaking in connection with which any Council is by special Act authorized to establish any such fund or any renewal fund.

Nothing in clauses eleven and eleven A of the Second Schedule to the Tramways Act, 1908, shall have any application to any tramway service of a Borough Council.

Every Council shall keep such accounts and keep them in such manner as may be prescribed by the Audit Office, but so always that—

The Council may from time to time set aside out of its General Account any moneys to form a fund or funds for the re-erection, repair, or reinstatement of any buildings or other property of the Corporation that may be destroyed or damaged by fire, and may from time to time invest any moneys so set aside and pay the proceeds of such investment into the said fund or funds.

The Council may from time to time set aside out of its General Account any moneys to form a fund or funds to meet claims for accidents arising out of the exercise and performance by the Council of its powers, duties, and functions under the principal Act or any other Act; but no greater sum shall be set aside in any one year than the amount that at current rates would have been payable for that year in respect of the insurance of workers employed by the Council and in respect of insurance against public risk.

The Council may from time to time invest any moneys so set aside and pay the proceeds into the said fund or funds.

The Council shall in each financial year, after making provision for the payment of interest and sinking fund in respect of any loans in connection with any trading undertaking carried on by it, and for maintenance and repairs, make a charge against the revenues of such undertaking to provide for full and proper depreciation of the assets of the undertaking:

Provided that it shall not be necessary for the Council in making any such charge for depreciation in respect of a trading undertaking existing at the commencement of this Act to take into account any failure by the Council at any time prior to such commencement to make sufficient provision for depreciation of the depreciable assets of such undertaking:

Provided further that if any dispute arises between the Audit Office and the Council as to the sufficiency of the charge made for depreciation the matter shall be referred to the Minister, whose decision shall be final.

In ascertaining what is the full and proper depreciation to be provided in any year in accordance with the requirements of the last preceding subsection the Council may take into account—

The amount of any charge for depreciation made in accordance with the foregoing provisions of this section shall be credited to a Depreciation Fund:

Provided that where in that year payments have been made out of the revenues of the undertaking to meet sinking-fund charges in respect of any loan-moneys expended on the creation of depreciable assets of the undertaking, the Council may if it thinks fit deduct from the total amount of such charge for depreciation the total amount of such payments in respect of sinking-fund charges, and in such case the balance remaining shall be the amount that shall be charged against the revenues of the undertaking and credited to the Depreciation Fund.

When the Council has credited a Depreciation Fund with the amount of any charge made by it under the last preceding section, it shall, save as provided in subsection four hereof, appoint three Commissioners, to be called “Depreciation Fund Commissioners,” and thereupon sections forty, forty-one, and forty-four of the Local Bodies’ Loans Act, 1926, shall, with the necessary modifications, apply to such Commissioners in like manner as if they were Sinking Fund Commissioners appointed under the said section forty.

No Councillor or employee of the Council shall be appointed a Commissioner under this section, and if any Commissioner becomes a Councillor or an employee of the Council he shall forthwith vacate his office as Commissioner.

All Renewal Fund Commissioners appointed under section one hundred and fifteen of the principal Act shall on the commencement of this Act cease to hold office as such, and every body corporate consisting of such Commissioners is hereby dissolved; but all such Commissioners in office at the commencement of this Act shall, without further appointment, be Depreciation Fund Commissioners for the purposes of this section, and all moneys then held by them as Renewal Fund Commissioners shall continue to be held by them as, and are hereby declared to be moneys belonging to, their respective Depreciation Funds, to be dealt with as provided in sections forty-nine to fifty-seven hereof.

Notwithstanding anything in subsection one hereof the Council may appoint the Public Trustee to be the sole Commissioner of the Depreciation Fund.

Save as hereinafter in this section provided, the Council shall in the month of April of each year pay to the Depreciation Fund Commissioners all moneys credited in the previous financial year to the Depreciation Fund pursuant to section forty-seven hereof.

Where from any cause the full amount so credited cannot be paid to the Depreciation Fund Commissioners as required by the last preceding subsection, the following provisions shall apply:—

The proceeds of rates levied pursuant to the authority conferred by the last preceding subsection shall, notwithstanding anything to the contrary in any Act, be paid to the Depreciation Fund Commissioners as and when received.

The Commissioners may invest all moneys received by them pursuant to the last preceding section in the manner following, that is to say,—

Provided that where the Public Trustee is appointed to be the sole Depreciation Fund Commissioner he shall invest the moneys of the Depreciation Fund in the Common Fund of the Public Trust Office or in such other manner as may be specially authorized in that behalf by the Governor-General in Council.

Separate accounts shall be kept by the Commissioners of all moneys paid to or received by them in respect of each trading undertaking, and in preparing the yearly statement of accounts pursuant to section forty-four of the Local Bodies’ Loans Act, 1926, as applied by this Act, the Commissioners shall show in detail the amount of all moneys paid to or received by the Commissioners as aforesaid.

All moneys received by the Commissioners as aforesaid in respect of any trading undertaking, together with all accumulations thereof, shall be held by the Commissioners upon trust to pay the same to the Council, either in one sum or from time to time by instalments in respect of that undertaking, for the purpose of renewing or replacing the plant of the undertaking, or any part or parts thereof, that may from time to time become worn out, obsolete, or incapable from any other cause of further usefulness in connection with the undertaking.

Every demand made by the Council upon the Commissioners for any sum shall be accompanied by a copy of the resolution duly passed by the Council calling up such money, and by a full specification of the works proposed to be done. No such demand shall be for a less sum in any case than two hundred pounds, or for the total amount standing to the credit of the Depreciation Fund if that amount is less than two hundred pounds.

Every such resolution of the Council shall contain a statement that the money proposed to be called up is required to replace plant or material that has become worn out or obsolete, or is incapable from any other cause of further usefulness, and shall be certified by the Mayor and Town Clerk as a correct copy of the resolution.

The Commissioners may call for a report by an engineer or other qualified person to be appointed by them in respect of any demand under the foregoing provisions.

Such engineer or other person shall have the right to inquire into the reasons why the Council proposes to expend the money asked for, and the nature and extent of the work proposed to be done.

The Commissioners may pay to such engineer or other qualified person, out of the moneys held by them in respect of the undertaking to which the report relates, a reasonable sum for his services.

The Commissioners may pay the money so demanded by instalments as the works proceed, or may decline to pay the said money except under an order of the Supreme Court, in which case the Council may by a summons in Chambers apply for an order directing the Commissioners to pay to the Council the money so demanded; and if the Court is satisfied that the money required is necessary to replace or renew plant which has become worn out or obsolete, or incapable from any other cause of further profitable usefulness, the Court may make an order authorizing the payment of the money to the Council.

The decision of the Supreme Court in any such case shall be final.

The Commissioners shall not be obliged to see to the application of any moneys which may from time to time be paid or advanced by them to the Council under the foregoing provisions of this Act.

The Council, having established a Depreciation Fund as aforesaid in respect of any trading undertaking, may in any year make an appropriation from the revenue of that undertaking to provide a Reserve Fund.

The Council shall in the month of April next following pay such appropriation into a separate bank account.

The moneys paid into such account shall be applied for such extensions and permanent improvements of the undertaking in connection with which the fund is established as the Council thinks fit.

If at any time the Depreciation Fund is insufficient for the purposes for which it is established the Council may use any part of the Reserve Fund for those purposes.

The Council may from time to time, with the consent of the Audit Office, use any moneys forming part of the Reserve Fund for the purpose of recouping in whole or in part any deficiency in the Profit and Loss Account.

The Council may invest any part of the Reserve Fund in manner following:—

Separate accounts shall be kept by the Council of all moneys paid to or received by them in respect of such Reserve Fund, and all such accounts shall be audited by the Audit Office.

The Council shall, unless the Audit Office otherwise directs, annually transfer to the General Account from each separate account kept by it such sum as in the opinion of the Council represents the proportionate part attributable to such separate account of the payment made out of the General Account to any sick-benefit society that may be established by its employees, or to any fire-insurance or accident fund that may be established by the Council.

The Council may in like manner so transfer such proportionate part of the office, clerical, legal, and other expenses of the Council of any nature whatsoever.

If the Audit Office considers that any sum so transferred is excessive, or insufficient, or that no sum should be transferred from any particular separate account, the Council shall forthwith retransfer from the General Account the whole, or so much thereof as the Audit Office directs, of the sum transferred from that separate account, or, as the case may require, shall transfer to the General Account from the separate account such sum as the Audit Office directs.

The Council may from time to time transfer to the General Account any cash surplus remaining to the credit of any separate account which the Council is obliged by law to keep, showing the moneys accruing from any public works or trading undertakings executed, maintained, or carried on by the Council, or to transfer the whole or any part of such surplus to a separate account for the maintenance or renewal of such works:

Provided that no moneys shall be so transferred until due provision is made for all sums with which the separate account is by law chargeable, and for the payment out of the separate account of the interest, or interest and sinking fund, on any loan raised in connection with the work or undertaking to which the separate account relates.

If the balance in any of the separate accounts is at any time insufficient to meet the lawful charges thereon, the Council may transfer such sums as are necessary from the General Account to meet the same and may at any time repay any sum so transferred out of any excess in the receipts over the liabilities of any such account:

Provided that nothing in this subsection shall authorize the Council to pay out of its General Account the interest, or interest and sinking fund, on any loan otherwise than in the manner prescribed by section twenty-two of the Local Bodies’ Loans Act, 1926.

It shall not be lawful to make any transfer from any one to any other of such separate accounts, except as in this Act provided.

Sections forty-three to fifty-nine of this Act are in substitution for sections one hundred and ten to one hundred and twenty-five of the principal Act, and shall be deemed to form part of Part XIII thereof.

The said sections one hundred and ten to one hundred and twenty-five and sections twelve and thirteen of the Municipal Corporations Amendment Act, 1921–22, are hereby repealed.

This section and the said sections forty-three to fifty-nine of this Act shall come into force on the first day of April, nineteen hundred and twenty-nine.