Clause 24

All loans raised by the City Council by the issue of debenture stock and any other loans raised by the City Council for the purposes of the water, gas and electricity undertakings of the City Council under the provisions of any Municipal Ordinance or of the Local Government Ordinance, 1957 (Ord. 24 of 1957), as are referred to in section 40 of this Ordinance, shall be deemed to have been raised by the Board on the same terms and conditions on which such loans were raised by the City Council, and, notwithstanding the repeal of the Local Government Ordinance, 1957, the provisions of sections 80 to 101 thereof, save as may otherwise be provided in this Ordinance and unless the context otherwise requires, shall continue to have effect, mutatis mutandis, in respect of all such loans.

The Government shall pay half-yearly to the Board, in respect of any part of the loans referred to in subsection (1) of this section as was applied by the City Council in the acquisition of assets which are by subsection (2) of section 40 of this Ordinance or by section 5 of the Local Government Integration Ordinance, 1962 (Ord. of 1962), transferred to and vested in the Government, before the respective dates on which payments of interest by the Board on such loans fall due, an amount towards interest proportionate to such part, together with an amount towards sinking fund contributions due in respect of such part.

The Minister may, by agreement with the Board, make one or more lump sum payments in full and final discharge of the Government’s liabilities under subsection (2) of this section.

The Government shall make such contributions to the Board, as may be agreed between the Minister and the Board, towards the expenses of administering the loans referred to in subsection (1) of this section.

The Minister may give such directions to the Board as he deems fit, not inconsistent with the provisions of sections 80 to 101 of the Local Government Ordinance, 1957 (Ord. 24 of 1957), pertaining to the administration of the sinking funds referred to in section 40 of this Ordinance and to the investment of moneys thereof, and the Board shall give effect to such directions.