Policy Pronouncements.
Section 2
SEC. 2. Policy Pronouncements.—It shall be the basic policy that any local government may avail of credit facilities and resort to borrowings only if the local funds are not sufficient to finance the prosecution, completion, expansion, operation, and maintenance of local infrastructures and other socio-economic developmental projects. In times of emergency or of an impending financial dislocation that may prejudice the dispensation of public services in the locality, provincial, city and municipal governments may likewise secure provisional advances in the manner prescribed herein or avail of credit lines that government banks and other national lending institutions may extend to them for the purpose of stabilizing local finances.