Part 103 Council or local government subsidiary borrowing

Part 10.3 Council or local government subsidiary borrowing Local Government Act 2019 112 (3) A council may, by resolution, adopt a policy for investing money that is consistent with this Act and the Minister's guidelines. (4) A local government subsidiary may adopt a policy for investing money, approved by the constituent council or councils, that is consistent with this Act and the Minister's guidelines. (5) An investment must be in accordance with the council's policy or the local government subsidiary's policy for investing money. (6) If the council or local government subsidiary do not have a policy for investing money, the council or local government subsidiary may only invest money by banking money in an interest bearing account with an ADI. Part 10.3 Council or local government subsidiary borrowing 195 Definition borrowing, see section 196. 196 Meaning of borrowing A council or local government subsidiary borrows money if the council or local government subsidiary obtains any form of financial accommodation. Examples for section 196 1 The financial accommodation might take the form of an overdraft or a loan of some other kind. 2 If a council or local government subsidiary acquires possession of goods under a hire-purchase agreement, a lease or an instalment purchase arrangement, the council or local government subsidiary is taken to borrow money equivalent to the present value of the future consideration to be paid by the council or local government subsidiary under the agreement, lease or arrangement.