Except as provided by subsection (3), a council may not mortgage or charge any of its property as security for money which it has borrowed or which it otherwise owes.

Security given in breach of subsection (1) shall be unenforceable.

All money borrowed by a council (whether before or after the commencement of this section), together with any interest on the money borrowed, shall be charged indifferently on all the revenues of the council.

All securities created by a council shall rank equally without any priority.

The High Court may appoint a receiver on application by a person entitled to principal or interest due in respect of any borrowing by a council if the amount due remains unpaid for a period of two months after demand in writing.

The High Court may appoint a receiver under subsection (5) on such terms, and confer such powers, as it thinks fit.

The High Court may confer on a receiver appointed under subsection (5) any powers of the council or its officers of collecting, receiving and recovering the revenues of the council and of making rates.

No application under subsection (5) may be made unless the sum due in respect of the borrowing concerned amounts to not less than £10,000.

The Department may by order substitute a different sum for the one for the time being specified in subsection (8).

An order shall not be made under subsection (9) unless a draft of the order has been laid before, and approved by resolution of, the Assembly.