(1)Except as provided by subsection (3), a local authority may not mortgage or charge any of its property as security for money which it has borrowed or which it otherwise owes.
(2)Security given in breach of subsection (1) shall be unenforceable.
(3)All money borrowed by a local authority (whether before or after the coming into force of this section), together with any interest on the money borrowed, shall be charged indifferently on all the revenues of the authority.
(4)All securities created by a local authority shall rank equally without any priority.
(5)The High Court may appoint a receiver on application by a person entitled to principal or interest due in respect of any borrowing by a local authority if the amount due remains unpaid for a period of two months after demand in writing.
(6)The High Court may appoint a receiver under subsection (5) on such terms, and confer on him such powers, as it thinks fit.
(7)The High Court may confer on a receiver appointed under subsection (5) any powers which the local authority has in relation to—
(a)collecting, receiving or recovering the revenues of the local authority,
(b)issuing levies or precepts, or
(c)setting, collecting or recovering council tax.
(8)No application under subsection (5) may be made unless the sum due in respect of the borrowing concerned amounts to not less than £10,000.
(9)The Secretary of State may by order substitute a different sum for the one for the time being specified in subsection (8).
A local authority shall supply the Secretary of State with such information relating to any of the matters dealt with in this Chapter, and at such time, as he may request.