Constitution of the Republic of South Africa, 1996/2001-11-21/Chapter 13

Municipal loans

A Municipal Council may, in accordance with national legislation —

raise loans for capital or current expenditure for the municipality, but loans for current expenditure may be raised only when necessary for bridging purposes during a fiscal year; and bind itself and a future Council in the exercise of its legislative and executive authority to secure loans or investments for the municipality.

National legislation referred to in subsection (1) may be enacted only after any recommendations of the Financial and Fiscal Commission have been considered.

