Amendment status not verified — confirm the current text below against the official source.
Investment of sinking fund.- (1) All money paid into a sinking fund shall, as soon as possible be invested by the Corporation in :- (a) Government securities, or (b) securities guaranteed by Government, or (c) municipal debentures of the City; and shall be held by the Corporation for the purpose of repaying from time to time the debenture issued by it. (2) All dividends and other sums received in respect of any such investment shall, as soon as possible after receipt, be paid into the appropriate sinking fund and invested in the manner prescribed by sub-section (1). (3) Money standing to the credit of two or more sinking funds may, at the discretion of the Corporation, be in invested in a common fund, and it shall not be necessary for the Corporation to allocate the securities held in such investment among the several sinking funds. (4) When any part of a sinking fund is invested in municipal debentures or is applied to paying of any part of a loan before the period fixed for repayment, the interest which would otherwise have been payable on such debentures or on such part of the loan shall be paid into the sinking fund and invested in manner laid down in sub-section (1). (5) any investment made under this section may from time to time subject to the provisions of sub-section (1) be varied or transferred from one sinking fund to another: Provided that the former sinking fund shall be increased by a sum equal to the sum taken for the purposes of transfer to the later sinking fund. 117.Power of Corporation to invest in its own debentures.- (1) For the purpose of investing any portion of the municipal fund, including the sinking funds, the Corporation may reserve and set apart for issue at par, to and in the name of Corporation, any portion of the debentures to be issued on account of any loan, provided that the intention to reserve and set apart such debentures shall have been notified as a condition of the issue of the loan. (2) The issue of any such debentures to the Corporation as aforesaid shall not operate to extinguish or cancel any such debentures, but every debenture so issued shall be valid in all respect as if issued to and in the name of any other person. (3) The purchase by, or the transfer assignment or endorsement to, the Corporation, of any debenture issued by the Corporation shall not operate to extinguish or cancel any such debenture, but the same shall be valid and negotiable in the same manner and to the same extent as if held by, or transferred, assigned or endorsed to any other person. Madhya Pradesh Municipal Corporation Act, 1956 58 | P a g e