197Council's or local government subsidiary's power to borrow

197 Council's or local government subsidiary's power to borrow (1) Subject to subsection (2), the Minister's approval, to be given after consultation with the Treasurer, is required before a council or local government subsidiary borrows money.

Part 10.3 Council or local government subsidiary borrowing Local Government Act 2019 113 (2) However, the Minister's approval is not required for the following: (a) an advance on overdraft if: (i) the term of the advance does not exceed 2 months; and (ii) the amount of the advance does not exceed 2% of the council's total revenue for the last financial year for which the council has an audited financial statement; (b) a transaction classified as a minor transaction under guidelines issued by the Minister. (3) Subject to subsection (4), the council or local government subsidiary may borrow money if: (a) for the council – council has, by resolution, sought the Minister's approval to borrow money; and (b) for the local government subsidiary – the local government subsidiary has obtained written authorisation from each of its constituent councils to seek the Minister's approval to borrow money; and (c) if the Minister's approval is required for the borrowing – the Minister has approved the borrowing of the money. (4) If subsection (2) applies, the council or local government subsidiary may borrow money if: (a) for the council – the council has, by resolution, decided to borrow money; and (b) for the local government subsidiary – the local government subsidiary has obtained written authorisation from each of its constituent councils to borrow money. (5) A council resolution or written authorisation under subsection (3)(a) or (b) or (4)(a) or (b) must specify the following: (a) the amount to be borrowed; (b) the proposed lender or provider of financial accommodation; (c) the purpose of the loan or financial accommodation; (d) the terms of the loan or financial accommodation.

Local Government Act 2019 114