130. Local authorities and other public authorities.

All money borrowed by a local authority1, together with any interest on it, is charged indifferently on all the revenues of the authority2, and all securities created by a local authority rank equally without any priority3. Any other purported mortgage or charge of local authority property as security for money borrowed or otherwise owing is ultra vires and unenforceable4. A local authority may borrow money for any purpose relevant to its functions under any enactment5 or for the purposes of the prudent management of its financial affairs6, but may not borrow if so doing would result in a breach