(1) Notwithstanding any thing contained in this Act, any local authority raising a loan under the provisions  of any law for the time being in force, by the issue of bonds  or,  other securities other than debentures shall in respect of such loan, be chargeable with a duty of one per centum on the total amount of the bonds, or other securities issued by it, and such bonds or other securities need not be stamped and shall not be chargeable with any further duty on renewal, consolidation, subdivision or otherwise. 

(2) The provisions  of sub­section (1) exempting certain bonds, or other securities  from being stamped and from being chargeable with certain further duty shall  apply to the  bonds  or other securities other than debentures  of all  outstanding loans of the  kind mentioned thereon,  and all such bonds  or other securities shall  be valid,  whether the same are stamped or not. 

(3) In the case of willful neglect to pay the duty required by this section the local authority shall be liable to forfeit to the Government  a sum equal  to ten per centum upon the  amount of duty payable, and alike penalty for every month after the first month during which the neglect continues.