Local Government (Scotland) Act 1947

General Provisions as to Borrowing.

276 Loans to joint boards.

(1) The powers of the Public Works Loan Commissioners to make loans to a local authority shall include power to make loans to a joint board for any purpose for which the board have power to borrow money.

(2) The provisions of this Part of this Act shall, subject to necessary modifications, apply to and in relation to a joint board having power to borrow money as they apply to and in relation to a local authority.

277 Power to re-borrow.

(1) A local authority may without the consent of any Minister borrow for the purpose of replacing money previously borrowed by the authority which is intended to be repaid forthwith:

Provided that a local authority shall not have power to borrow under this section—

(a) for the purpose of making any payment to a sinking fund or for paying any instalment or making any annual payment which has or may become due in respect of borrowed money; or

(b) for the purpose of replacing "any money previously borrowed which has been repaid—

(i) by instalments or annual payments; or

(ii) by means of a sinking fund; or

(iii) out of money derived from the sale of land; or

(iv) out of any capital money properly applicable to the purpose of repayment other than money borrowed for that purpose.

(2) Any money borrowed under this section shall for the purposes of repayment be deemed to form part of the original loan and shall be repaid within that portion of the fixed period which remains unexpired, and the provisions which are for the time being applicable to the original loan shall apply to the money borrowed under this section:

Provided that the Minister concerned may, upon application made to him by the local authority for that purpose, extend the period for repayment of the money borrowed under this section so as to expire on such date as he thinks fit, not being later than the expiration of the maximum period which might have been permitted for the repayment of the original loan.

278 Protection to lenders.

A person lending money to a local authority on any form of security or taking or holding any such security shall not be bound to inquire whether the borrowing of the money is or was legal or regular or whether the money raised was properly applied and shall not be prejudiced by any illegality or irregularity in the matters aforesaid or by the misapplication or non-application of any such money.

279 Balance of unexpended borrowed money.

The balance of any money borrowed by a local authority and not required for the purposes for which the money was borrowed may, with consent of the Secretary of State, be applied to any Other purpose for which capital money may be applied by the authority:

Provided that—

(i) nothing in this section shall require the consent of the Secretary of State to be obtained in the case of a county council or town council having a loans fund or shall dispense with the necessity of the consent of the Public Works Loan Commissioners in any case in which such consent is required under section nine of the [44 & 45 Vict. c. 38.] Public Works Loans Act, 1881;

(ii) where money borrowed for any of the purposes of any enactment or statutory order relating to the supply of electricity is proposed to be applied for any other of the said purposes, the provisions of this section shall apply with the substitution of the consent of the Electricity Commissioners for that of the Secretary of State.