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[59 & 60 Vict.] South Shields Corporation Act, 1896. [Ch. l.]
to 238 of the Public Health Act 1875 shall apply to all money raised by borrowing on mortgage under this section.
(3.) The following provisions shall apply to moneys raised or borrowed for the purpose of loans to the school board :-
(a.) The sum shall be lent by the Corporation to the school board for a period not exceeding that for which the school board is authorised to borrow or re-borrow the same and with a provision for repayment by equal annual instalments of principal or of principal and interest combined:
(b.) if any sum payable to the Corporation for principal in respect of any sum lent to the school board shall not be received within six months of the time appointed for the payment thereof a like sum shall be set apart out of the borough
fund and if after the application or investment of the sum so set apart or the payment thereof into the stock (redemption) fund as herein-after provided the whole or any part thereof shall be received by the Corporation the sum so received shall be carried to the credit of the borough fund.
(4.) The following provisions shall apply to moneys borrowed for he purpose of loans to the school board and not raised by the issue
of stock :
(a.) Every sum so borrowed shall be repaid by the Corporation within a period to expire not more than one year after that for which the same was lent by them to the school board:
(b.) All sums received from the school board for interest shall be applied towards the payment of interest payable in. respect of moneys so borrowed the balance (if any) being carried to the credit of the borough fund:
(c.) All sums received from the school board for principal except sums
which are to be carried to the credit of the borough fund under the provisions of sub-section (3) (b) of this section) and all sums set apart out of the borough fund under that sub section shall be applied towards the repayment of the principal payable in respect of moneys so borrowed and until so applied shall be invested in statutory securities the Corporation being at liberty from time to time to vary and transpose such
investments. The interest derived from such investments shall be applied in making good any loss or deficiency of or in the principal moneys so invested that may arise by depreciation of the investments or otherwise and if not required for that purpose shall be applied as if the same had been received for interest from the school board.
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