Section 41 of Local Authority Powers to Raise Loans Quiz

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Questions and Answers

According to Section 41, a local authority is permitted to raise loans for various purposes. Which of the following is NOT mentioned as one of the purposes for which the loan can be raised?

  • Execution of permanent works
  • Erection of buildings
  • Acquisition of land
  • Provision or replacement of vehicles (correct)

According to Section 41, what is the maximum limit for the total debt of the local authority?

  • Six times the annual value
  • Four times the annual value
  • Five times the annual value (correct)
  • Three times the annual value

According to Section 41, what is the condition for using the loan to pay off the existing loan?

  • The existing loan must be less than the annual value
  • The existing loan must be at least five times the annual value
  • The existing loan must be fully paid off
  • The existing loan must not exceed the total debt limit (correct)

According to Section 41, what expenses can be paid using the loan obtained by the local authority?

<p>Expenses for acquiring land, erecting buildings, executing permanent works, providing or renewing any plant, and providing or replacing vehicles (C)</p> Signup and view all the answers

According to Section 41, what must a local authority adhere to when raising a loan?

<p>The provisions of any other written law (B)</p> Signup and view all the answers

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