15. Grant of Government Loans

  1. If the Government grant a loan to a local authority under rule 11, the local authority shall be required to execute an agreement in the form given in Appendix III in favour of the Government and the loan shall be granted subject to such conditions as the Government may specify.
  2. Every grant of a Government loan shall be subject to the conditions that -
    1. the local authority shall furnish to the Examiner of Local Fund Accounts, the Accountant General, the Government and the authority authorised under rule 6, all information which they may require regarding its funds and regarding the expenditure of the loan;
    2. the accounts of the local authority in respect of the loan amount shall be open to audit by the Accountant General;
    3. if the Government or the authority authorised under rule 6 considers that the local authority has failed to comply with any of the conditions prescribed in respect of the loan or with any of the requirements of these rules it shall be lawful for them to order that no further payments shall be made on account of such loan and that any amount advanced with interest thereon shall be repaid immediately.