THE KERALA MUNICIPALITY ACT, 1994* - nrcddp

Provided that —(i) no loan shall be raised without the previous sanction of the Government or otherwisethan in accordance with the provisions of the Kerala Local Authorities Loans Act, 1963 (30of 1963) and the rules issued thereunder;(ii) the amount of the loan the rate of interest and the terms including the date of floatation, thetime and method or repayment and the like shall be subject to the approval of the Government.(2) When any sum of money has been borrowed under sub-section (1) no portion thereofshall, without the previous sanction of the Government, be applied for any purpose, other thanthat for which it was borrowed.298. Time limit of repayment of money borrowed under Section 297.— The time limit for therepayment of any money borrowed under section 297 shall in no case exceed sixty years, and the time limit forthe repayment of any money borrowed for the purpose of discharging any previous loan shall not, except with theexpress sanction of the Government, extend beyond unexpired portion of the period for which such previousloan was sanctioned.75 [299. Limitation on borrowing power.— (1) Notwithstanding anything contained in the forgoingprovisions the borrowing powers of a Municipality shall be as prescribed, in relation to the total annual receiptsof that Municipality.Provided that nothing contained in this section shall prevent the issuance of Revenue Bonds by theMunicipality, secured by pledge of the revenue stream from the project and strengthened on the basis ofescrow account or credit enhancement conditions:Provided further that the short fall in the escrow account would be made good from the grants due fromGovernment intimation by the trustees.]300. Form and effect of debentures.— All debentures issued under this chapter shallbe in such form as the Municipality may, with the previous sanction of the Government, determine,and shall be transferrable in such manner as shall be therein expressed and the right to sue inrespect of the money secured by any of such debentures shall vest in the holders thereof for thetime being without any preference by reason of some such debentures being prior in date toothers.301. Payment to survivors of joint payees.— Where any debenture or security issuedunder this Act is payable to two or more persons jointly, and either or any of them dies, then,notwithstanding anything contained in section 45 of the Indian Contract Act 1872 (Central Act 9of 1872), the debenture or security shall be payable to the survivor or survivors of such persons:Provided that nothing in this section shall affect any claim by the representative of a deceasedperson against such survivor or survivors.302. Receipt by joint holder for interest or dividend.— Where two or more personsare joint holders of any debenture or security issued under this Act, any one of such person maygive an effectual receipt for any interest or dividend payable in respect of such debenture orsecurity, unless notice to the contrary has been given to the Municipality by any other of suchpersons.303. Maintenance and investment of sinking funds.— (1) The Municipality shall maintain sinking fundsfor the repayment of money borrowed on debentures issued and 76 [shall pay by quarterly instalments into suchsinking funds such sum as will be sufficient for the repayment within the period fixed for the loan of all moneysborrowed on debentures issued and in the event of default in payment of quarterly instalments, the grants due fromGovernment shall be remitted to the Sinking Fund.]75. Section 299 substituted by Act 14 of 1999, w.e.f. 24-3-1999.(2) All moneys paid into the sinking funds shall, as soon as possible, be invested by the