Napier Borough v Australian Mutual Provident Society and Attorney - General - [1917] NZLR 292

Municipal Corporation — Borrowing — Overdraft incurred for New Works — Special Loan to repay Overdraft — Validity — Rule in Clayton's Case(1) — Proposals for Special Loan — Effect of Invalidity of one or other of Proposals — Special Loan for Purchase of Fire-engines and Equipment — Legality — Capital Expenditure or Maintenance — Existing Overdraft — Subsequent Amalgamation of Borough — Proposal of New Borough for Further Loan on Overdraft — Limit — Municipal Corporations Act, 1908, ss 15, 96, 97, 120 (d), 124, 2, 253 — Local Bodies' Loans Act, 1913, ss 3, 16.