47. In each of the following cases, namely:
(1) whenever a municipality, contracting any loan which it is authorized to make under its charter or the general law, has not provided for the creation of a sinking fund for such loan, whether or not its charter or the general law has authorized the creation of such fund; or
(2) whenever a municipality which has contracted a loan and has provided for the creation of a sinking fund, has not levied the same at a rate sufficient to form the sinking fund required to repay the said loan at maturity; or has used for other purposes either the whole or any part of the money collected for the sinking fund,
Such municipality may,
(a) provide, by by-law, for the creation of a sinking fund to repay the loan, at maturity, and for levying upon the taxable immovable property of a tax sufficient for such purpose; or
(b) provide, by by-law, for the collection, by one or more levies upon all the taxable property in the territory of the municipality, of an amount sufficient to make good the deficit in any sinking fund already accumulated, wholly or in part, but a part of which has been diverted to other uses; or
(c) borrow, by by-law, for one or other of the purposes mentioned in subparagraphs a and b, in accordance with the provisions applicable to loans by such municipality.
Only a local municipality may exercise the powers provided for in subparagraphs a and b of the second paragraph.
R. S. 1964, c. 171, s. 46; 1996, c. 2, s. 633.