Amendment status not verified — confirm the current text below against the official source.
(1) For the purpose of investment of any portion of the Municipal Fund, including Sinking Fund, in the debentures issued by the Municipality for raising a loan, the Municipality may, within the limits set by the comprehensive debt limitation policy framed under section I 08, reserve and set apart any portion of such debentures for issue at par thereto in the name of the Municipality provided that the intention so to reserve and set apart such debentures shall have been notified as a condition of raising the loan. (2) The issue of any debentures by the Municipality under sub-section (1) shall not operate to extinguish or cancels such debentures, but issued to, and in the name of, any other person. (3) The purchase by, or the transfer, assignment or endorsement to, the Municipality of any debenture issued by it shall not operate to extinguish or cancel such debenture and every such debenture shall be valid and negotiable in the same manner and to the same extent as if it were held by or transferred, assigned or endorsed to, any other person.