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CHAP. XXV. library authority, with the sanction of the Local Government Board, and in the case of a library authority, being Commissioners appointed by a parish, with the sanction also of the vestry of such parish, may borrow money for the purposes of this Act on the security of any fund or rate applicable for those purposes"; and the above-mentioned sections of the Public Health Act, 1875 (), are incorporated, with necessary modifications, so as to apply to all money borrowed for the purposes of this Act as if the library authority were an urban authority (i). Where the Public Library Act, 1892, has been "adopted" by a rural parish, the library authority is the parish council (j).

x.-General Borrowing Powers of County and other Local Councils. By sect. 69 of the Local Government (England and Wales) Act, 1888 (k), county councils are empowered, with the consent of the Local Government Board, to borrow on the security of the county fund, and of any revenues for the consolidation of county debts, the purchase of lands and buildings, the execution of permanent works, the promotion of emigration and colonization, or the paying off of existing loans. And by the same section it is enacted as follows:

(5.) A loan under this section shall be repaid within such period, not exceeding thirty years, as the county council, with the consent of the Local Government Board, determine in each

case.

"(6.) The county council shall pay off every loan either by equal yearly or half yearly instalments of principal, or of principal and interest combined, or by means of a sinking fund set apart, invested, and applied in accordance with the Local Loans Act, 1875 (1), and the Acts amending the same.

"(8.) Where the county council are authorized to borrow any money on loan they may raise such money either as one loan or several loans, and either by stock issued under this Act, or by debentures or annuity certificates under the Local Loans Act, 1875 (7), and the Acts amending the same, or, if special reasons exist for so borrowing, by mortgage, in accordance with sections two hundred and thirty six and two hundred and thirty-seven of the Public Health Act, 1875 (m).

"(9.) Provided that where a county council have borrowed by means of stock they shall not borrow by way of mortgage except for a period not exceeding five years.

"(10.) Where the county council borrow by debentures such debentures may be for any amount not less than five pounds."

(h) 38 & 39 Vict. c. 55.

(i) 55 & 56 Vict. c. 53, s. 19.

(j) 56 & 57 Vict. c. 73, s. 7, infra, P. 455.

(k) 51 & 52 Vict. c. 41.
() 38 & 39 Vict. c. 83.
(m) 38 & 39 Vict. c. 55.

By sect. 12 of the Local Government Act, 1894 (n), a CHAP. XXV. county council may, if necessary, without the sanction of the Local Government Board, and irrespectively of any limit of borrowing, raise money, to lend to a parish council, by loan, subject to the like conditions and in the like manner as any other loan for the execution of their duties, and subject to any further conditions which the Local Government Board may, by general or special order, impose.

By sect. 7 of the Local Government Act, 1894 (»), the parish Borrowing meeting of a rural parish may adopt any of the several Acts powers of parish mentioned in that section, and in the Act referred to as the councils. "adoptive Acts"; and by sect. 12 of the same Act, parish councils are empowered, with the consent of the county council and the Local Government Board, to borrow money for the following purposes, viz.: "(a) for purchasing any land, or building any buildings, which the council are authorized to purchase or build; and (b) for any purpose for which the council are authorized to borrow under any of the adoptive Acts; and (c) for any permanent work or other thing which the council are authorized to execute or do, and the cost of which ought, in the opinion of the county council and the Local Government Board, to be spread over a term of years." The money is to be borrowed "in like manner and subject to the like conditions as a local authority may borrow for defraying expenses incurred in the execution of the Public Health Acts, and sections 233, 234, and 236 to 239 of the Public Health Act, 1875 (0), shall apply accordingly, except that the money shall be borrowed on the security of the poor rate and of the whole or part of the revenues of the parish council, and except that as respects the limit of the sum to be borrowed, one half of the assessable value shall be substituted for the assessable value for two years." A charge for the purpose of any of the adoptive Acts is to be ultimately upon the rate applicable to the purposes of that Act.

xi.-Borrowing Powers of School Boards.-School boards, constituted by the Elementary Education Act, 1870 (p), were empowered by sect. 57 of that Act to borrow money for certain purposes. That section was repealed by sect. 10 of the Elemen

(n) 56 & 57 Vict. c. 73. (o) 38 & 39 Vict. c. 55.

(p) 33 & 34 Vict. c. 75.

CHAP. XXV. tary Education Act, 1873 (q), which conferred upon school boards a similar but slightly varied power of borrowing for the particular purposes, and in the manner mentioned in the repealing section, which is as follows:

Amendment of 33 & 34 Vict. c. 75, 8. 57, as to loans.

Loans by

Commis

Sect. 10. "Where a school board have incurred or require to incur any expense, either

(a) in providing or enlarging a schoolhouse; or
(b) in paying off any debt charged on a schoolhouse provided by
them, or on any land acquired by them by gift, transfer,
purchase, or otherwise for the purposes of this Act; or
(c) in any works of improving or fitting up a schoolhouse which,
in the opinion of the Education Department, ought by
reason of the permanent character of such works to be
spread over a term of years,

they may, with the consent of the Education Department, spread
the payment over such number of years, not exceeding fifty, as may
be sanctioned by the Education Department, and may, with the
like consent, for that purpose borrow money on security of the
school fund and local rate, and may charge that fund and the local
rate with the payment of the principal and interest due in respect
of the loan. They may, if they so agree with the mortgagee, pay
the amount borrowed with the interest by equal annual instalments
not exceeding fifty, and if they do not so agree they shall annually
set aside one fiftieth of the sum borrowed as a sinking fund:
Provided that no such consent of the Education Department shall
be granted unless proof be given to their satisfaction that the
additional school accommodation which it is proposed to supply
is required in order to provide for the educational wants of the
district.

"For the purpose of such borrowing the clauses of the Commissioners Clauses Act, 1847 (r), with respect to the mortgages to be executed by the Commissioners, shall be incorporated with this Act; and in the construction of those clauses for the purpose of this Act, this Act shall be deemed to be the special Act, and the school board which is borrowing shall be deemed to be the Commissioners."

By the same section the Public Loans Commissioners are Public Works empowered, on the recommendation of the Education Department, to lend money to school boards on the security of the school fund and local rates.

sioners.

Temporary

rent expenses.

A school board has no power to borrow money and to charge loan for cur- the ratepayers with interest which the board has paid under the contract of loan, for purposes or in manner other than as prescribed by the Act, as, for instance, where a board contracted a temporary loan to meet current expenses, which the school

(g) 36 & 37 Vict. c. 86,

(r) 10 & 11 Vict. c. 16,

fund was not sufficient to pay, until they could obtain money out of the rates (s).

CHAP. XXV.

raise money

schools.

The provisions of the above section are, by the Elementary Power to Education Act, 1876 (t), rendered applicable to the establishing, to build, &c. building and maintaining by school boards of certified day industrial industrial schools thereby established, and certified industrial schools established by the Industrial Schools Act, 1866 (u), with the exception that "one of her Majesty's Principal Secretaries of State" is to be substituted for "education department " throughout the section. It is also enacted that "such establishment and building shall be deemed to be a work for which a school board is authorized to borrow within the meaning of the first schedule to the Public Works Loans Act, 1875" (x).

Further powers of borrowing are conferred upon school boards by sect. 3 of the Elementary Education (Industrial Schools) Act, 1879 (y), which enacts as follows:—

contribution

"Where a school board resolve to contribute any sum of money Power of towards, or to undertake the cost of the alteration, enlargement, or school board rebuilding, but not of the furnishing, of an industrial school, or the to borrow for establishment or building, but not of the furnishing of a school towards or intended to be an industrial school, or the purchase of land undertaking required either for the use of an existing industrial school, or for cost of enlargthe site of a school intended to be an industrial school, such school ing, &c. an board, with the consent of one of her Majesty's Principal Secretaries industrial of State, shall have the same power of spreading the payment of the sums so contributed, or of the cost of such undertaking, over a number of years, and of borrowing money for that purpose, as they have in the case where they resolve to establish an industrial school; and the provisions of the Elementary Education Acts, 1870 and 1873 (z), and the Elementary Education Act, 1876 (a), and the Public Works Loans Act, 1875 (b), shall apply accordingly.

"For the purposes of this Act, an industrial school means a certified industrial school and a certified day industrial school."

school.

borrow for

blind and deaf children.

By sect. 5 of the Elementary Education (Blind and Deaf Power to Children) Act, 1893 (e), school boards and other "school autho- education of rities," as defined by the Act, are invested with similar powers of borrowing to those conferred on school boards by the Elementary Education Acts (d), subject to a discretionary power in the Education Department to consent to the exercise thereof.

(s) Reg. v. Reed, 5 Q. B. D. 483, C. A.

(t) 39 & 40 Vict. c. 79, s. 15.

(u) 29 & 30 Vict. c. 118.

(x) 38 & 39 Vict. c. 89.

(y) 42 & 43 Vict. c. 48.

(z) 33 & 34 Vict. c. 75; 36 & 37
Vict. c. 86.

(a) 39 & 40 Vict. c. 79.
(b) 38 & 39 Vict. c. 89.
(c) 56 & 57 Vict. c. 42.
(d) Vide sup.

rated societies

CHAPTER XXVI.

OF MORTGAGES BY BUILDING AND FRIENDLY SOCIETIES.

Unincorpo- i. As to Unincorporated Building Societies.-Benefit building still governed societies were, prior to 1874, governed by the Benefit Building by the Act of Societies Act, 1836 (a). Societies formed under that Act were

1836.

Borrowing

powers of an unincorporated society.

Loans from strangers.

Provision that

first charge.

not corporate bodies, but acted and held their property through the medium of directors and trustees. This Act was repealed by the Building Societies Act, 1874 (b), except as regards societies then subsisting until incorporated. Many societies, formed under the repealed Act, still exist; and some of these, not having obtained certificates of incorporation under the later Act, are still regulated by the provisions of the repealed Act.

The Act of 1836 contained no provisions authorizing the directors of building societies to borrow money; and accordingly the power of an unincorporated society to borrow depends on its rules.

Unless the rules otherwise provide, the directors may borrow from persons who are not members of the society; such persons are creditors entitled, on the winding up of the society, to be paid in priority to the members of all classes, including those who have previously given notice of withdrawal (c).

Where the rule under which a loan is contracted provides that loan shall be a the money borrowed shall be a first charge on the funds and property of the society generally, the lenders will not be allowed to take special securities on particular property (d).

Members

liable for

Directors borrowing money for a society cannot pledge the not personally individual credit of members; any rule purporting to empower them so to do would be so far ultra vires, as being inconsistent with the nature of a building society under the Act (e).

money borrowed.

(a) 6 & 7 Will. IV. c. 32. See post, P. 543.

(b) 37 & 38 Vict. c. 42, s. 7. See post, p. 544.

(c) Murray v. Scott, 9 App. Cas. 519; Re Mutual Aid Permanent Building

Soc., 30 Ch. D. 434.

(d) Murray v. Scott, sup. See Small v. Smith, 10 App. Cas. 119.

(e) Murray v. Scott, 9 App. Cas. at p. 533. See Re Mutual Aid Permanent Building Soc., sup.

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