LOCAL GOVERNMENT ACT 2009 - SECT 112 Councillors liable for improper borrowings

LOCAL GOVERNMENT ACT 2009 - SECT 112

112 Councillors liable for improper borrowings

(1) This section applies if a local government borrows money—

(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 .

(2) The councillors who knowingly agree to borrow the money are jointly and severally liable to pay the local government—

(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.

(3) Those amounts may be recovered as a debt payable to the local government.

(4) This section applies despite—

(a) the fact that a security was issued for the borrowing; or

(b) the Statutory Bodies Financial Arrangements Act .