Municipal Loans.
— o (Prr Press Association.) Sydney, August 3. • An important decision was given by the Full Court last week in regard to the non-liability of Municipal Council* for loans. In 1890 the Lambton Municipality obtained the permission of the Governor to borrow £7000 for the purpose of erecting lighting plant and carrying out other permanent improvements. The money was borrowed from the Commercial Bank of Australia with the knowi ledge that it was to be expended in paying off liabilities to the contractors who erected the electric plant. The Council mortgaged the municipal revenues to secure repayment of the loan, and having made default the Bank; made application for the appointment of a receiver. The application was heard before the Chief Justice, who dismissed it with costs on the grounds that the notice of the intended loan was insufficient, and that the money having been borrowed to pay an existing liability, and not for making or completing, permanent improvements, could not be recovered. The Bank then appealed to the Full Court, which upheld , the decision.
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Bibliographic details
Feilding Star, Volume XVIII, Issue 31, 5 August 1896, Page 2
Word Count
176Municipal Loans. Feilding Star, Volume XVIII, Issue 31, 5 August 1896, Page 2
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