Local Government (Scotland) Act 1947

275 Establishment of loans fund by county council or town council.

(1) Subject to the provisions of this Part of this Act, a county council or a town council may, as from the commencement of a financial year on passing a resolution to that effect, establish under this Act a fund to be called the " loans fund," which shall be applicable to all money borrowed or to be borrowed by the council and the redemption or repayment thereof and the payment of interest or dividends thereon.

(2) A loans fund established under this section shall be administered by the council in accordance with the rules set out in the Eighth Schedule to this Act.

(3) Any loans fund of a county council or town council established under or in pursuance of the provisions of a local Act shall, if the council pass a resolution to that effect and as from the date specified in the resolution, be deemed to be a loans fund established under this section, and the rules set out in the Eighth Schedule to this Act shall apply to the said loans fund in substitution for the provisions of the local Act (including any rules, regulations or scheme therein contained or made thereunder) subject to such modifications and adaptations as may be prescribed by regulations made by the Secretary of State with respect to the transition of the said loans fund from the provisions of the local Act to the provisions of this Act, and any such regulations may apply generally or in the case of any particular council.

(4) A loans fund established under this section by the town council of a burgh shall not apply to money borrowed or to be borrowed for the common good of the burgh except, money borrowed or to be borrowed for common good purposes in pursuance of a statutory borrowing power.