43.
| (1) Subject to the provisions of section 50, it shall be lawful for a Village Council to borrow from the Ceylon Government, or any person or body of persons whether incorporated or not, such sum or sums of money as may be necessary for any of the purposes of the Council. Every loan raised by a Village Council shall be subject to such rate of interest and to such conditions for the repayment thereof as the Minister with the concurrence of the Minister of Finance may approve. |
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| (2) For the purpose of securing repayment of the sum or sums so borrowed and the interest accruing thereon, the Council may mortgage and assign to the lender, by or on whose behalf such sum or sums or any part thereof may be lent, any revenues accruing under the provisions of this Ordinance and any property acquired by or belonging to the Council. |
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| (3) Notwithstanding anything in section 15 of the Local Loans and Development Ordinance contained, it shall be lawful for the commissioners appointed under that Ordinance to advance money to a Village Council for the purposes aforesaid on such security as such commissioners may deem sufficient, and the provisions of that Ordinance shall apply to any such loan whether made before or after the commencement of this Ordinance. |
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| (4) All securities given by a Village Council in respect of loans under this section shall be free of stamp duty. |
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| (5) It shall be the duty of any Village Council which raises a loan under this section to set apart each year such portion of the communal fund as may be sufficient for the purpose of paying the interest falling due on the loan and of repaying the principal when it falls due. |
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Sri Lanka Consolidated Acts