(2)
"Guarantee a loan" includes provide a security in connection with a loan.
(3)
The councillors who knowingly agree to loan the money are jointly and
severally liable to pay the local government—
(a) the amount of the loan;
and
(b) interest on the amount of the loan, 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 loan.
(4) Those amounts may be
recovered as a debt payable to the local government.
