sec.112Councillors liable for improper borrowings

### sec.112 Councillors liable for improper borrowings This section applies if a local government borrows money— for a purpose that is not for the good rule and government of the local government area; or in contravention of this Act or the Statutory Bodies Financial Arrangements Act . The councillors who knowingly agree to borrow the money are jointly and severally liable to pay the local government— the amount borrowed; and interest on the amount borrowed, at the rate at which interest accrues on overdue rates, calculated from the day of the borrowing to the day of repayment; and any fees, charges, penalties or other expenses incurred by the local government in relation to the borrowing. Those amounts may be recovered as a debt payable to the local government. This section applies despite— the fact that a security was issued for the borrowing; or the Statutory Bodies Financial Arrangements Act . (sec.112-ssec.1) This section applies if a local government borrows money— for a purpose that is not for the good rule and government of the local government area; or in contravention of this Act or the Statutory Bodies Financial Arrangements Act . (sec.112-ssec.2) The councillors who knowingly agree to borrow the money are jointly and severally liable to pay the local government— the amount borrowed; and interest on the amount borrowed, at the rate at which interest accrues on overdue rates, calculated from the day of the borrowing to the day of repayment; and any fees, charges, penalties or other expenses incurred by the local government in relation to the borrowing. (sec.112-ssec.3) Those amounts may be recovered as a debt payable to the local government. (sec.112-ssec.4) This section applies despite— the fact that a security was issued for the borrowing; or the Statutory Bodies Financial Arrangements Act . - (a) for a purpose that is not for the good rule and government of the local government area; or - (b) in contravention of this Act or the Statutory Bodies Financial Arrangements Act . - (a) the amount borrowed; and - (b) interest on the amount borrowed, at the rate at which interest accrues on overdue rates, calculated from the day of the borrowing to the day of repayment; and - (c) any fees, charges, penalties or other expenses incurred by the local government in relation to the borrowing. - (a) the fact that a security was issued for the borrowing; or - (b) the Statutory Bodies Financial Arrangements Act .