(1)Where the council of a borough or an urban district are licensed by the Postmaster General to provide a system of public telephonic communication, they may defray the expenses of exercising the powers conferred by the licence in the case of a borough out of the borough fund or borough rate, and in the case of an urban district not a borough out of the rate out of which the general expenses of the council in the execution of the Public Health Acts are defrayed, and may borrow money for the purpose in accordance with the Public Health Acts, but in the case of a borough any money so borrowed shall be borrowed on the security of the borough fund or borough rate; and the council may, subject to the provisions of the Telegraph Acts, 1863 to 1897, and of the licence, exercise their powers under the licence throughout the area for which it is granted, although part of that area may be outside the borough or urban district.
(2)In the application of this Act to Scotland, a royal or parliamentary burgh shall be substituted for a borough, and a police burgh for an urban district, and the town council or commissioners thereof, as the case may be, for the council of a borough or urban district, and for the borough fund or borough rate, or the rate oat of which the general expenses of an urban district council in the execution of the Public Health Acts are defrayed, there shall be substituted the police or the burgh general assessment, or, where there is no assessment so named, an assessment under any head of the burgh assessments or city rate under any local Act payable by occupiers only; and the town council or commissioners, as the case may be, may, with the consent of the Secretary for Scotland, borrow for the purposes of this Act on the security of that assessment or rate, but subject to the conditions for the repayment of loans prescribed by the [60 & 61 Vict. c. 38.] Public Health (Scotland) Act, 1897.
(3)In Ireland expenses incurred for the purpose of this section may be defrayed as expenses incurred in the execution of the Public Health (Ireland) Acts, 1878 to 1896, for sanitary purposes, and money may be borrowed accordingly.