Amendment status not verified — confirm the current text below against the official source.
Establishment and maintenance of sinking fund.— (1) Whenever a loan has to be repaid from sinking fund, the Board shall establish such a fund and shall pay into it every year until the loan is repaid, a sum so calculated that if regularly paid, throughout the period agreed upon by the Board, it would, with accummulations by way of compound interest, be sufficient after payment of all expenses, to pay off the loan at the end of that period. (2) The rate of interest on the basis of which the sum referred to in sub-section (1) shall be calculated shall be such as may be prescribed: Provided that the rate so prescribed shall not exceed five per cent per annum.