Local Government Act 1976 [Act 171]

49 Advances by way of overdraft   cite [+]

Subject to any other written law, a local authority may from time to time obtain from any bank advances by way of overdraft and any such overdraft shall, unless covered by fixed deposits with the same bank, require the approval of the State Authority:

Provided that all moneys so advanced by the bank and any interest thereon shall constitute a debt due by the local authority and shall be a charge on the property and revenues, present and future, of the local authority, and the provisions of subsection 47(2) shall apply in all respects as if such advances were loans granted under section 47.

50 Sinking fund   cite [+]

The local authority shall establish a sinking fund or funds in respect of any loan raised by or granted to it and shall cause to be paid into such fund or funds such sums in every year to provide for the redemption of the loan or such sums as the State Authority may direct and the local authority shall not appropriate any sum from the sinking fund for any other purpose without the consent of the State Authority.

51 State Authority may give directions as regards sinking fund   cite [+]

The State Authority may in its discretion from time to time give directions to the local authority as to the manner in which the moneys in any such sinking fund shall or may be applied, invested or transferred to any other fund or to the general assets of the local authority.

52 Renewal and insurance funds   cite [+]

A local authority may from time to time provide for the annual setting aside of amounts to create-

(a) adequate renewal funds to provide for the entire or partial replacement of assets of the local authority which owing to depreciation or other cause need to be replaced at some future date; and

(b) insurance funds to cover risks or to provide for contingencies, the liability for which would otherwise have to be met by the local authority as and when such risks or contingencies fall due.

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