GENERAL FINANCIAL PROVISIONS
39 Revenue of the local authority cite [+]
The revenue of a local authority shall consist of-
(a) all taxes, rates, rents, licence fees, dues and other sums or charges payable to the local authority by virtue of the provisions of this Act or any other written law;
(b) all charges or profits arising from any trade, service or undertaking carried on by the local authority under the powers vested in it;
(c) all interest on any money invested by the local authority and all income arising from or out of the property of the local authority, movable and immovable; and
(d) all other revenue accruing to the local authority from the Government of the Federation or of any State or from any statutory body, other local authority or from any other sources as grants, contributions, endowments or otherwise.
40 Local Authority Fund cite [+]
(1) All moneys received by the local authority by virtue of this Act or any other written law shall constitute a fund to be called the Local Authority Fund and shall, together with all property which becomes vested in the local authority, be under the direction and control of the local authority.
(2) All moneys received by the local authority in respect of the Local Authority Fund shall be lodged on current or deposit account with one or more banks licensed under the Banking and Financial Institutions Act 1989 [Act 372].
(3) All orders or cheques against the said Fund shall be signed by two officers authorized in writing by the local authority.
(4) Any such moneys may be invested in any securities in which trustees are empowered to invest or in such other manner as authorized by the Minister of Finance.
41 Power of local authority to raise loans cite [+]
(1) Subject to any other written law, a local authority may, by resolution and with the consent of the State Authority, from time to time raise by way of loans such amounts of money upon such conditions as the State Authority shall approve for any of the following purposes:
(a) to defray the expenses incurred or to be incurred for any of the following:
(i) the acquisition of land which the local authority is empowered to acquire;
(ii) the erection of any building which the local authority has authority to erect;
(iii) the execution of any permanent work, the provision or renewal of any plant or the provision or replacement of vehicles; and
(b) to pay off existing loans:
Provided that the loan shall not make the total indebtedness of the local authority to exceed five times the annual value as contained in the current Valuation List of the local authority and provided that the period for repayment of such loan shall not exceed sixty years.
(2) Before any such resolution is submitted to the local authority a detailed estimate shall be made of the cost of the proposed project on which the money loaned is to be expended, the annual cost of upkeep of such project, the annual revenue to be derived therefrom, the duration thereof, and the proposed manner of repayment.
42 Power of local authority to issue mortgages or debenture stock and to make regulations in respect thereof cite [+]
(1) The local authority may secure all or any moneys which it is authorized to borrow under section 41 by mortgage or charge or by the creation and issue of debenture stock.
(2) The conditions of issue of mortgages, charges and debenture
stock shall be-
(a) subject to the approval of the State Authority;
(b) declared at the time of such issue;
(c) entered in the register of such security,
and a printed copy of such conditions shall be supplied to every owner of such security requiring the same.
(3) The local authority shall make in respect of debenture stock issued by it under the provisions of this Act regulations providing for-
(a) the form of the prospectus to be issued;
(b) the form of such debenture stock or any of them;
(c) the establishment and maintenance in such form as may be prescribed of a register or registers of such debenture stock and the owners for the time being thereof;
(d) the inspection of any such register by members of the public and the obtaining of certified copies thereof or extracts therefrom;
(e) the transfer of any such debenture stock;
(f) the transmission of the title to any such securities on death, bankruptcy or otherwise by operation of law;
(g) the rectification of any such register;
(h) the fees to be paid by any person in respect of the issue, registration, transfer or transmission of any such security or for the inspection of any such register or the obtaining of any copy thereof or extract therefrom; and
(i) the appointment of, and the fees payable to, the Registrars and underwriters.
(4) All such regulations shall be submitted to the State Authority for approval and shall when so approved be published in the Gazette.
(5) Any register maintained under the provisions of any such regulations shall be evidence of any matters thereby directed or authorized to be inserted therein and, as regards persons entered therein as owners of debenture stock, of the title of each person to such debenture stock.
43 Notice of trust, charge or other interest not receivable cite [+]
The local authority shall not be affected by notice, whether express, implied or constructive, of any trust, charge or other interest, legal or equitable, whereby any person other than the registered owner or owners for the time being may claim to be interested in or entitled to any security issued by the local authority.
44 Securities to be trust investment cite [+]
(1) A trustee, executor or administrator may, unless forbidden by the will or other instrument under which he acts, invest the trust funds in any security issued by a local authority under this Act or any other written law and may for that purpose call in any trust funds invested in any other securities.
(2) Where any local authority or statutory body is by law authorized or required to invest moneys in the securities of the Government of the Federation, it may invest such moneys in any securities issued by a local authority under this Act or any other written law.
45 Remedies for default cite [+]
(1) If at any time any interest due on any loan other than stock borrowed by a local authority under this Act shall remain unpaid by the local authority for three months after demand therefor in writing has been lodged with the local authority by the person entitled thereto or by his duly authorized representative, application may be made by such person or his representative to the High Court for the appointment of a receiver of the property and revenue on which the loan is secured.
(2) On the hearing of such application the Court may make such order and give such directions as under the circumstances shall seem expedient for the raising and payment of the moneys due, and, in particular, the Court may order that a rate or rates of such amount or amounts as it may fix be made and levied upon all rateable property within the local authority area, and such rate so ordered shall have the same incidence as any rate imposed by the local authority and may be enforced in like manner and the proceeds thereof shall be paid into Court or otherwise as the Court shall direct.
(3) If at any time there is default in the repayment of any such loan or of any instalment thereof after a period of thirty days from the date on which such loan or instalment shall have become repayable, the like proceedings may be instituted on the application of the person to whom such repayment shall be due or his duly authorized
(4) The Court, on such application, in addition to any order which it is empowered to make under subsection (2), may order the sale of any property on which the loan may be secured, subject to the provisions of any written law as regards the alienation of any lands vested in the local authority.
46 Borrowing powers for special purposes cite [+]
(1) In addition to the powers of borrowing conferred upon a local authority by section 41 and subject to any other written law, a local authority may, for the purpose of carrying out any development for residential, commercial and industrial undertakings, raise by way of loan from any person such amounts of money at such rates of interest and upon such conditions as may be agreed upon between the local authority and that person with the approval of the State Authority.
(2) Any loan made to a local authority under the provisions of this section may be secured by a first mortgage or a first charge or by debentures upon the assets, and the revenues derived from the assets, in respect of which the money is borrowed but not upon any other assets or revenue of the local authority.
(3) Section 45 shall not apply to such loan or to any interest due thereon, but the mortgagee, chargee or debenture holder may exercise all such legal and equitable remedies in respect of his mortgage, charge or debentures as may, from time to time, be in force in the State in which the local authority area is situate.
47 Loans by Government cite [+]
(1) Subject to any other written law, the Government of the Federation or of any State may, out of its revenue or other moneys as may from time to time be set aside or appropriated for the purpose, grant loans to any local authority at such rates of interest and on such terms and conditions to be observed by the local authority obtaining such loan, in addition to those prescribed by law, as it shall think fit to impose.
(2) Where a local authority is unable to pay any money due in respect of any loan granted under this section, the Government of the Federation or of any State may, at any time after the expiry of sixty days from the date on which such money becomes due and payable, order that a rate or rates of such amounts as it may fix be made and levied upon all rateable property within the local authority area and such rate so ordered shall have the same incidence as any rate imposed by the local authority and may be enforced in like manner and the proceeds thereof shall be paid into the general revenue of the Federation or of the State.
48 Loans to be first charge on revenue and assets cite [+]
Every loan granted under sections 41 and 47 shall, subject to any prior charge, be a first charge upon the revenues and assets of the local authority obtaining such loan.