Section 88:

88. Purposes for which money may be borrowed (1) Subject to subsection (2), a Municipal City Council, Municipal Town Council or District Council may, with the approval of the Minister, borrow such sum as may be required for— (a) acquiring any land or any immovable property which it may require; (b) erecting any building which it has power to erect; (c) the execution of any permanent work, the provision of any plant or the doing of any other thing which it has power to execute, provide or do. (2) Except with the Minister’s approval— (a) the total debt of a Municipal City Council, Municipal Town Council or District Council shall, at no time, exceed twice the amount of its revenue for the preceding financial year; and (b) loan charges, inclusive of principal and interest, shall not, at any time, exceed 20 per cent of the total revenue of the Municipal City Council, Municipal Town Council or District Council for the financial year.