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Local Government (Scotland) Act 1975
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3A local authority may borrow by way of temporary loan or overdraft from a bank or otherwise any sums which they may temporarily require—
(a)for the purpose of defraying expenses (including the payment of sums due by them to meet the expenses of other authorities) pending the receipt of revenues receivable by them in respect of the year in which those expenses are chargeable ;
(b)for the purpose of the raising of a loan in the exercise of any statutory borrowing power.
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