Loans, when and how raised

(1) Whenever the general interest and welfare or development of any village will, in the opinion of two-thirds of the officers of the council, be advanced by an expenditure greater than can be met out of the annual revenue of the Village Fund, the council may, by resolution carried by two thirds of the officers, recommend, on the guarantee of an annual allocation of such amount of the Village Fund as may be equivalent to the annual interest and sinking fund necessary for its redemption, the raising of a loan, the proceeds of which shall be devoted to the advancement of the general interest and welfare or development of the village. (2) The Minister of Finance may borrow such sum of money as may be authorized under the Local Public Loans Act, Cap. 80, and thereafter the sum necessary to meet the annual interest and sinking fund for the redemption of the loan shall be a first charge upon all moneys which may then or may thereafter form part of the Village Fund described in sections 36 and 37 of this Act.