10.-(1) Notwithstanding anything in the Municipal Corporations Law contained-
(a)the Municipal Corporation of Nicosia shall, at the request of the Governor, pay into the Nicosia water supply fund such moneys as may be required to enable the Board to carry out the provisions of this Law or of any Order in Council made thereunder:
Provided that no moneys so paid shall be applied or used by the Board for any capital expenditure upon the Nicosia water supplies or any part thereof except the water supply known as the Makedhonitissa water;
(b)the Governor may, upon a resolution of the Municipal Corporation of Nicosia, by Order, and subject to the terms and conditions that may be imposed by such Order, authorize the Municipal Corporation-
(i) to borrow moneys from the Loan Commissioners or any other person for the purpose of complying with the request of the Governor made under paragraph (a) hereof; and
(ii) for the purpose of securing the payment of the principal and interest of any such loan, to mortgage to the lender any rates, fees or duties levied by the Municipal Corporation;
(c) if the Municipal Corporation of Nicosia neglects or refuses to pay such moneys as the Governor may request, the Governor may appoint one or more Special Commissioners to perform the duty of the Municipal Corporation in that behalf and such Commissioners shall, in the exercise and for the purposes of such duty, be vested with all the powers of the Municipal Corporation, and in particular with the power of borrowing money upon the security of any rates, fees or duties levied by the Municipal Corporation.
(2) In this section, the expression "capital expenditure" shall mean any expenditure for the permanent improvement of the Nicosia water supplies or any part thereof or for an improvement which will continue to benefit such supplies or part thereof after the expiration of the control and management thereof by the Board, but shall not include any expenditure incurred in connection with the purchase or laying of pipes or the construction of channels or the use of any other appliances for the conveyance or distribution of water to or from the Nicosia water supplies or any part thereof.