130. Local authorities and other public authorities.

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