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Borrowing.
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6.—(1) Where—
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(a) the Minister has consented to the borrowing of moneys by a local authority for the purpose of defraying the expenses of one or more certified works by means of the creation and issue of stock (in this sub-section (referred to as new stock), and
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(b) moneys are held by such local authority in a redemption fund for the purpose of the redemption of any stock (in this sub-section referred to as existing stock) previously issued by such local authority,
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the Minister may by order authorise such local authority to exchange, by agreements with the holders, all or any of the existing stock which is required to be redeemed within a period not exceeding five years from the date of such order for new stock equal in nominal value to the nominal value of the existing stock so exchanged and to withdraw from the appropriate account or accounts in such redemption fund and expend for the purposes of such certified work or works and for the expenses (if any) of such exchange an amount equal to the nominal value of the existing stock so exchanged.
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(2) Moneys borrowed by a local authority for the purposes of a certified work shall not be reckoned as part of the debt of such local authority for the purposes of any enactment limiting the amount which may be borrowed by such local authority or limiting the amount which may be borrowed by such local authority otherwise than in pursuance of a provisional order confirmed by the Oireachtas.
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