Article | Last updated: 2007-11-08 | Ministry of Local Government and Modernisation
§ 60. State review and approval of financial obligations
1. Any resolution to raise a loan or any resolution to enter into a long-term contract for the renting of buildings, installations and permanent operating equipment that may cause the municipality or the county municipality to incur expenses extending beyond the next four budget years is not valid until it has been approved by the Ministry, if:
a. the municipal council or the county council has resolved to adopt an annual budget where the budget does not provide cover for all expenses,
b. the municipal council or the county council has resolved to adopt a finance plan where the finance plan does not provide cover for all expenses,
c. the municipal council or the county council has in pursuance of § 48(4) second sentence resolved that an accounting deficit shall be distributed over the following budget year after the accounts have been presented, or
d. the municipality or the county municipality does not follow the adopted plan for the covering of any deficit.
2. If any of the conditions in the first paragraph (a), (b), (c) or (d) of this section is satisfied, the Ministry shall review the legality of the budget resolution passed by the municipal council or the county council.
3. The Ministry shall establish a register of all municipalities and county municipalities that are subject to approval. Any person has the right to familiarise himself with what is registered in the register, and to obtain a transcript thereof.
4. Until the individual municipality or county municipality is registered in the register, the Ministry may not implement approval in pursuance of sub-section 1 of this section. In relation to rules of law that let it be decisive for the legal position of a third party whether the latter was aware of or was not aware of a matter, what is registered in pursuance of this provision is deemed to have come to the knowledge of a third party.
5. Municipalities and county municipalities that enter into contracts that require approval must inform their co-contractors that they have been made subject to conditional review and approval.