106.—(1) (a) In this section—

“local authority” includes a joint body;

“appropriate Minister” means—

(i) if the relevant borrowing or lending is in respect of matters which relate to the responsibility or interest of only one Minister of the Government other than the Minister, that Minister of the Government,

(ii) if such matters relate to the responsibility or interest of 2 or more Ministers of the Government (none of whom is the Minister), such one of those Ministers of the Government as has the greater or greatest interest in the matters, and

(iii) in all other cases, the Minister.

(b) If in relation to paragraph (ii) of the definition of “appropriate Minister” there is any doubt as to which of 2 or more Ministers of the Government has the greater or greatest interest, the doubt shall be determined by the Minister and the decision of the Minister shall be final.

(2) Subject to subsections (3) and (8) and any regulations made under subsection (5), a local authority may borrow money in any manner which it considers suitable for the effective performance of its functions.

(3)(a) Borrowing by a local authority under this section shall only be with the sanction of the appropriate Minister.

(b) Paragraph (a) does not apply to borrowing which the appropriate Minister may exempt for the purposes of this subsection.

(4) Any application for the sanction of the appropriate Minister under subsection (3)(a) shall be in such format as may from time to time be specified by the appropriate Minister.

F130[(5) The Minister may, after consultation with the Minister for Finance and the Minister for Public Expenditure and Reform, make regulations in relation to borrowing by local authorities.]

(6)(a) A local authority may lend money to another local authority on such terms as to repayment and other matters as it considers proper.

(b) F131[…]

(7) A decision to borrow or lend under this section is a reserved function.

F130[(8) The appropriate Minister may, after consultation with the Minister for Finance and the Minister for Public Expenditure and Reform, sanction borrowing by a local authority in a currency other than the currency of the State.]

(9) Except in accordance with this section, a local authority shall not—

(a) borrow money, or

(b) lend money to another local authority.