(1) The Board may with the approval of the Minister, borrow, secure or raise money for all or any of the following purposes—
(a) the provision of working capital;
(b) the fulfilling of the functions of the Board under this Act;
(c) the provision of capital for the expansion of and additions to its fixed assets;
(d) the redemption of any advance or loan that the Board is required or entitled to redeem;
(e) any other expenditure properly chargeable to capital account.
(2) The Board may, with the approval of the Minister, borrow by way of overdraft or otherwise such sums as the Board may require for meeting its obligations and discharging its functions under this Act.
(3) The Board shall not without the prior consent of the Minister hypothecate, mortgage or pledge its assets for the repayment of sums borrowed or owing the Board.
(4) Cabinet may, with the approval of the House of Assembly signified by a Resolution on such terms and conditions as it may think fit, guarantee the repayment of principal and interest on any sums borrowed by the Board under this section.
(5) Where the Cabinet is satisfied that there has been default in the repayment of any principal money or interest guaranteed under the provisions of this section, the Cabinet shall direct the repayment out of the Consolidated Fund of the amount in respect of which there has been such default.
(6) The Board shall make to the Treasury, at such time and in such manner as the Cabinet may direct, payments of such amounts as may be so directed in or towards repayment of any sums issued in fulfilment of any guarantee given under this section and payments of interest on what is outstanding in respect of any sums so issued at such rate as the Cabinet may direct, and different rates of interest may be directed as regards different sums and as regards interest for different periods.
(Substituted by Act 12 of 1978)