Railways Act, 1921

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Power of councils to give guarantees.

71.—(1) The council of any county or borough or district may be authorised by an order under the principal Act to guarantee or to join with any council, person, or body of persons in guaranteeing the whole or any part of the interest or dividends on any loan or share capital of a light railway company for such period and on such terms and subject to such conditions as may be approved by the Minister after consultation with the Minister of Health:

Provided that the procedure laid down in the Borough Funds Acts, 1872 and 1903, shall apply when a council propose to give or join in giving such a guarantee in like manner as it applies when a council propose to incur expenditure in opposing a Bill in Parliament.

(2) Any expenses incurred by the council in satisfying such guarantee shall be defrayed in like manner as expenses incurred by them with reference to an application for an order authorising a light railway under the principal Act.

(3) Paragraphs (f), (g), and (h) of section eleven of the principal Act shall apply in respect of such guarantee as if the guarantee were an advance by the council.