19. Interest on Government loans

  1. In the case of Government loans interest shall be charged, at the rate agreed upon yearly or half-yearly, as the Government may determine and shall be reckoned and paid on each installment from the date on which such installment is received by the local authority.
  2. The Government may, if they think fit, direct that compound interest at a rate not less than 7 '/ per cent per annum shall be paid upon all overdue installments of interest or principal and interest.