26A person lending money to a local authority shall not be bound to inquire whether the borrowing of the money is legal or regular or whether the money raised was properly applied and shall not be prejudiced by any illegality or irregularity, or by the misapplication or non-application of any of that money.
27The provisions of paragraphs 1 to 9 of this Schedule shall not apply to any local bonds issued under the [1966 c. 49.] Housing (Scotland) Act 1966 or any previous corresponding enactment, or the power conferred on a local authority by that Act to issue local bonds.
28(1)Subject to paragraph 1(4) above and sub-paragraph (2) below, the provisions of this Schedule shall, subject to any necessary modifications, apply to a joint board having power to borrow money, a water development board or a river purification board, as they apply to a local authority.
(2)The Secretary of State may by regulations make such provisions as seem to him necessary or expedient with respect to the application of the provisions of this Schedule to the aforesaid boards, either generally or to any particular board or class of board.
(3)A statutory instrument containing regulations under this paragraph shall be subject to annulment in pursuance of a resolution of either House of Parliament.
29Save as otherwise expressly provided, the provisions of this Schedule in their application to money borrowed before the commencement of this Act by a local authority under a local enactment shall be subject to the provisions of such local enactment so far as inconsistent with the provisions hereof.
30Nothing in this Schedule shall apply to or affect the power of an islands or district council having a common good to borrow on the security of the common good or any loan secured thereon.
31In this Schedule, unless the context otherwise requires—
" advance ", in relation to the loans fund and a borrowing account of a local authority, means the transfer of money by way of loan from the loans fund to the appropriate borrowing account in exercise of a statutory borrowing power;
" borrowing account ", in relation to a local authority, means an account of the authority relating to a purpose for which the authority have a statutory borrowing power ;
" fixed period ", in relation to any sum advanced to a borrowing account or to a relevant authority, means such period not exceeding 30 years from the date of the advance as the local authority determine or such other period as the Secretary of State may determine in any particular case or for the purpose of any enactment;
" loans fund " means the loans fund established under this Schedule ;
" mortgage " means a deed containing an assignation by way of security of the funds, rates and revenues of a local authority ;
" relevant authority " means any authority to whom a local authority may make a loan under paragraph 10 or 11 above ;
" security ", in relation to a local authority, means a mortgage, a bond, a deposit receipt or other document of debt issued by the authority and the security created thereby (including stock created by the authority or a certificate in respect of such stock) by or under any enactment, but does not include a local bond issued under the [1966 c. 49.] Housing (Scotland) Act 1966 or any previous corresponding enactment or a heritable security or other deed of security or document of debt affecting the common good of an islands area or district ;
" statutory borrowing power " means any power to borrow money conferred on a local authority by or under any enactment, but does not include the power of an islands or district council to borrow for the purposes of the common good;
" trustee securities " means any security in which trustees are for the time being authorised by law to invest trust money.