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(1)Subject to the following provisions of this section, an internal drainage board may borrow, on the security of their property or income—
(a)for the purpose of defraying any costs, charges or expenses incurred by them [F1in the exercise or performance of any power or duty under this Act or the Water Resources Act 1991]; or
(b)for the purpose of discharging any loan contracted by them under this Act or any provision re-enacted, whether directly or indirectly, by this Act.
(2)The council of a county [F2, county borough] or London borough and the Common Council of the City of London may borrow for the purposes of this Act.
(3)The consent of the relevant Minister shall be required for any borrowing by an internal drainage board under this section other than a borrowing for the purpose of discharging any loan previously contracted.
(4)Money borrowed by an internal drainage board under this section may be borrowed for such period not exceeding fifty years as the board, with the consent of the relevant Minister, may in each case determine.
(5)Where the drainage board for an internal drainage district borrow any sums in respect of which they have determined that some part only of that district shall be liable, the money borrowed shall be repayable only out of rates levied on, or special levies issued or contributions received in respect of, that part of the drainage district.
(6)The provisions of the M1Commissioners Clauses Act 1847 as to mortgages shall be incorporated with the provisions of this section so far as it relates to borrowing by an internal drainage board.
(7)Where the owner of any land comprised within any internal drainage district is authorised to invest money on real security, he shall, unless the instrument authorising the investment provides to the contrary, have power to invest money on a first mortgage of the drainage rates leviable by the drainage board for that district.
(8)The reference in subsection (1) above to an internal drainage board borrowing on the security of their property or income is a reference to their borrowing on the security of any property vested in the board or on the security of—
(a)any rates to be levied by the board under this Act;
(b)any special levies to be issued by the board in accordance with regulations under section 75 of the M2Local Government Finance Act 1988; or
(c)any contributions to be paid to the board under this Act.
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