Amendment status not verified — confirm the current text below against the official source.
Investment of amount at the credit of Sinking Fund.- (1) All moneys paid into a Sinking Fund shall, as soon as possible, be invested by the Standing Committee in – (a) Government securities, or (b) securities guaranteed by the Central Government or any State Government, or (c) debentures issued by the municipality, or (d) such other public securities as may be approved by the State Government, and shall be held by the municipality for the purpose of repaying, from time to time, the loans raised by it by the issue of debentures or otherwise. (2) All dividends and other sums received in respect of any investment under sub-section (1) shall, as soon as possible after their receipt, be paid into the Sinking Fund and shall be invested in the manner laid down in that sub- section. (3) Money standing at the credit of two or more Sinking Funds may, at the discretion of the Standing Committee, be invested together as a common fund, and it shall not be necessary for the Standing Committee to allocate the securities held in such investments to the several Sinking Funds. (4) Subject to the provisions of sub-section (1), any investment made under this section may, from time to time, be varied or transposed.