Chapter 29:15 URBAN COUNCILS ACT 290 Borrowing powers (1) Subject to this Act, a council may borrow money in terms of subsection (5) for any of the following projects— (a) the acquisition or construction of permanent works or undertakings; (b) the acquisition of immovable property or any interest therein; (c) the making of advances authorized by this or any other Act; (d) the payment of compensation; (e) the liquidation of the principal moneys owing on account of any previous loan; (f) the relief of general distress occasioned by some calamity in the council area; (g) the acquisition of plant, equipment, vehicles and the like. (2) A council shall not borrow money in terms of subsection (5) unless— (a) a resolution to borrow the money has been passed by a majority of the total membership of the council and the mayor or chairman, as the case may be, has not exercised a casting vote; and (b) the council has complied with subsection (3); and (c) the Minister has granted the council authority in terms of subsection (4) to borrow the money; and (d) the borrowing power has not been cancelled in terms of subsection (8); (e) the council complies with any conditions fixed by the Minister in terms of subsection (4): Provided that paragraphs (a), (b), (c) and (e) shall not apply where the council has such authority as is mentioned in paragraph (b) of the definition of “borrowing power” in section two hundred and eighty-four. (3) Whenever a council has resolved in terms of paragraph (a) of subsection (2) to borrow money it shall— (a) give notice in two issues of a newspaper, stating— (i) the general purposes for which moneys are to be borrowed and the amount of the money required to be borrowed therefor; and (ii) that any objections which ratepayers or voters wish to make must be lodged with the town clerk within such period, being not less than twenty-one days from the date of the last publication of the notice, as may be specified therein; and (iii) that details of the proposals may be inspected at the office of the council; and (b) make available to ratepayers and voters such information on the proposals as it considers necessary; and (c) make application to the Minister, not earlier than the date referred to in subparagraph (ii) of paragraph (a) before which objections must be lodged, for authority in terms of subsection (4) to borrow the money; and (d) submit to the Minister with any application made in terms of paragraph (c) any objections which have been received before the date referred to in that paragraph, together with the comments of the council thereon. (4) On receipt of an application in terms of paragraph (c) of subsection (3) the Minister may approve the project in whole or in part and grant the council authority to borrow the moneys applied for, either in whole or in part, subject to such conditions as he may impose, including, without derogation from the generality of the foregoing, a condition limiting the period of validity of such authority. (5) Where a council has the necessary borrowing power, it may resolve to raise the money— (a) from the State, the Local Authorities Pension Fund, a municipal provident fund, a municipal medical aid society or sick fund or a local authority; or (b) with the consent of the Minister and the Minister responsible for finance, by the issue of stock, bonds, debentures or bills or from any other source not mentioned in paragraph (a): Provided that a municipal council which is operating a consolidated loans fund in terms of section two hundred and ninety-seven may resolve to obtain the necessary moneys from that fund and any advances from that fund for the purposes of this section shall be deemed to be borrowings. 116