Local Government Code of 1991
Section 296. General Policy. -
(a) It shall be the basic policy that any local government unit may create indebtedness, and avail of credit facilities to finance local infrastructure and other socio-economic development projects in accordance with the approved local development plan and public investment program.
(b) A local government unit may avail of credit lines from government or private banks and lending institutions for the purpose of stabilizing local finances.