Amendment status not verified — confirm the current text below against the official source.
Provisions as to exercise of borrowing powers.— The exercise of the powers of borrowing conferred by this Act shall be subject to the following provisions, namely:— (a) money shall not be borrowed for the execution of any work other than a permanent work including under this expression any work, of which the cost ought, in the opinion of 11[the 12[State] Government], to be spread over a term of years; 13[(b) the sum borrowed for any purpose other than for discharging any of the obligations arising out of the transfer to the corporation of the powers, duties, assets and liabilities of the Board of Trustees for the Improvement of the City of Bombay constituted under the City of Bombay Improvement Trust Transfer Act, 1925 (Bom. XVI of 1925), 14[or other than for discharging any obligation arising out of the acquisition, extension, administration, operation or maintenance of the 15[Brihan Mumbai Electric Supply and Transport Undertaking]] 16[or other than for discharging any obligations arising out of any of the provisions contained in Chapters IX and X,] including the balances of all the outstanding loans and debts borrowed for any of the said purpose shall not exceed in the whole 17[three time] the rateable value of the premises in 18[Brihan Mumbai] assessable, as hereinafter provided, to property taxes; and (c) the sum borrowed for the purpose of discharging any of the obligations, arising out of the transfer to the corporation of the powers, duties, assets and liabilities of the Board of Trustees for 1 This word was substituted for the word “Provincial” by the Adaptation of Laws Order, 1950. 2 The words “the Central or the Provincial Government” were substituted for the words “the Secretary of State for India in Council” by the Adaptation of Indian Laws Order in Council. 3 This word was substituted for the word “Provincial” by the Adaptation of Laws Order, 1950. 4 The words “by the Central Government or, as the case may be, the Provincial Government” were substituted for the words “under the orders of the Governor General in Council, by the Governor in Council” by the Adaptation of Indian Laws Orders in Council. 5 This word was substituted for the word “Provincial” by the Adaptation of Laws Order, 1950. 6 The proviso was omitted by the Adaptation of Indian Laws Order in Council. 7 The words “the Central or the Provincial Government” were substituted for the words “the Secretary of State for India in Council” by the Adaptation of Indian Laws Order in Council. 8 This word was substituted for the word “Provincial” by the Adaptation of Laws Order, 1950. 9 These words were inserted by Bom. 48 of 1948, s. 19. 10 These words were added, by Bom. 48 of 1948, s. 19. 11 The words “the Provincial Government” were substituted for the words “Government” by the Adaptation of Indian Laws Order in Council. 12 This word was substituted for the word “Provincial” by the Adaptation of Laws Order, 1950. 13 Clauses (b), (c) and (d) were substituted for the original clause (b) by Bom. 13 of 1933, s. 23(a). 14 These words were inserted by Bom. 48 of 1948, s. 20. 15 These words were substituted for the words “Bombay Electric Supply and Transport Undertaking” by Mah. 25 of 1996, s. 2, Schedule. 16 These words and figures were inserted by Mah. 34 of 1973, s. 7(a). 17 These words were substituted for the words “double” by Mah. 21 of 1989, s. 17(a). 18 These words were substituted for the words “Greater Bombay” by Mah. 25 ot 1996, s. 2, Schedule. 1888 : III] The Mumbai Municipal Corporation Act 155 the Improvement of the City of Bombay constituted under the City of Bombay Improvement Trust Transfer Act, 1925 (Bom. XVI of 1925) including the balances of all outstanding loans and debts borrowed by the Board of Trustees for the Improvement of the City of Bombay under the City of Bombay Improvement Act, 1898 (Bom. IV of 1898), and the City of Bombay Improvement Trust Transfer Act, 1925 (Bom. XVI of 1925), and by the corporation for the purpose of discharging the aforesaid obligations, shall not at any time exceed in whole double the rateable value of the premises in 1[Brihan Mumbai] assessable, as hereinafter provided, to property taxes; and (d) the sum borrowed under clause (c) for the purpose of making good any deficit in budget estimate B framed under section 126 shall not in any year exceed twenty lakhs of rupees ;] 2[and (dd) the sum borrowed for the purpose of discharging any obligation arising out of the acquisition, extension, adminstration, operation, or maintenance of the 3[Brihan Mumbai Electric Supply and Transport Undertaking] including the balances of the all outstanding loans and debts borrowed for the said purpose, shall not at any time exceed in the whole 4[three times] the rateable value of the premises in 5[Brihan Mumbai] assessable, as hereinafter provided, property taxes; and] 6[(ddd) the sums borrowed for the purposes of discharging any obligations arising out of any of the provisions of Chapters IX and X, including the balances of all the outstanding loans and debts borrowed for any of the said purposes, shall not at any time exceed 7[on the whole thrice] the rateable value of the premises in 8[Brihan Mumbai] assessable, as hereinafter provided, to property taxes; and] 9[(e) the money may be borrowed for such time, not exceeding sixty years as the corporation, with the sanction of the 10[ 11[State] Government], determine in each case; 12[(f) the corporation shall either pay off the money so borrowed, within the period sanctioned, by equal annual instalments of principal or of principal and interest, or in such other manner as may be approved by 13[the 14[State] Government], or they shall in every year set a part as a sinking fund and accumulate in the way of compound interest, by investing the same in the purchase of public securities, such sum as will, with accumulations in the way of compound interest, be sufficient, after payment of all expenses, to pay off the moneys so borrowed within the period sanctioned or within such other period as may be approved by 15[the 16[State] Government];] (g) the corporation may at any time apply the whole or any part of a sinking fund set apart under this section in or towards the discharge of the moneys for the repayment of which the fund has been established: Provided that they pay into the fund each time that interest would have been received by the corporation in respect of the sinking fund or the part of the sinking fund so applied, and accumulate, until the whole of the moneys borrowed are discharged, a sum equivalent to the interest which would have been so received; (h) the investment every year of any sum set apart as portion of the principal of a sinking fund shall be made within fifteen days after the day on which the second half-yearly payment of interest 1 These words were substituted for the words “Greater Bombay” by Mah. 25 of 1996, s. 2, Schedule. 2 This portion was inserted by Bom. 48 of 1948, s. 20. 3 These words were substituted for the words “Bombay Electric Supply and Transport Undertaking” by Mah. 25 of 1996, s. 2, Schedule. 4 These words were substituted for the word “double” by Mah. 21 of 1989, s. 17(b). 5 These words were substituted for the words “Greater Bombay” by Mah. 25 of 1996, s. 2, Schedule. 6 Clause (ddd) was inserted by Mah. 34 of 1973, s. 7(b). 7 These words were substituted for the words “in the whole double” by Mah. 10 of 1998, s. 50. 8 These words were substituted for the words “Greater Bombay” by Mah. 25 of 1996, s. 2, Schedule. 9 Original clauses (c) to (g) of section 109 were re-lettered as (e) to (i) by Bom. 13 of 1933, s. 23(b). 10 The words “Provincial Government” were substituted for the words “Governor-in-Council” by the Adaptation of Indian Laws Order in Council. 11 This word was substituted for the word “Provincial” by the Adaptation of Indian Laws Order, 1950. 12 New clause (f) was substituted for the original by Bom. 13 of 1933, s. 23(c). 13 The words “Provincial Government” were substituted for the words “Governor-in-Council” by the Adaptation of Indian Laws Order in Council. 14 This word was substituted for the word “Provincial” by the Adaptation of Indian Laws Order, 1950. 15 The words “Provincial Government” were substituted for the words “Governor-in-Council” by the Adaptation of Indian Laws Order in Council. 16 This word was substituted for the word “Provincial” by the Adaptation of Indian Laws Order, 1950. 156 The Mumbai Municipal Corporation Act [1888 : III is due by the corporation in respect of the loan for repayment of which such sinking fund is established; and the re-investment of any sum received by the corporation on account of interest on moneys appertaining to a sinking fund already invested, and the investment of any sum payable into the fund under clause 1[(g)] as the equivalent of interest which the corporation would have received, if the sinking fund or a part thereof had not been applied in any manner authorised by the said clause, shall be made within one month from the day on which such interest is received or from the day on which such interest would have been received, as the case may be: 2[Provided that during the year in which the loan for repayment of which a sinking fund has been established is due for repayment, the sum to be set apart as portion of the principal of such sinking fund and the sum received on account of interest on moneys forming part of such sinking fund may be retained by the corporation in such form as they think fit;] (i) where money is borrowed for the purpose of discharging a previous loan the time for repayment of the money so borrowed shall not, unless with the sanction, of 3[the 4[State Government], extend beyond the unexpired portion of the period for which the original loan was sanctioned and shall in no case be extended beyond the period of sixty years from the date of the original loan]: 5[Provided that, nothing contained in this clause shall apply to any sum borrowed for the purposes of any capital works in relation to Chapters IX and X]. 6[109A. Investment of sinking fund and surplus moneys in debentures issued by the Corporation.— (1) In respect of any sinking funds which by this Act the corporation are directed or empowered to invest in public securities and in respect of any surplus moneys which by this Act the Commissioner on behalf of the corporation is empowered to invest in like securities, it shall be lawful for the corporation to reserve and set apart for the purpose of any such investment any debentures issued or to be issued on account of any loan for which the sanction of the 7[8[State] Government, 9[* * *] shall have been duly obtained under section 106 or issued by the Board of Trustees for the improvement of the City of Bombay under section 52 of the City of Bombay Improvement Act, 1898 (Bom. IV of 1898) or section 68 of the City of Bombay Improvement Trust Transfer Act, 1925 (Bom. XVI of 1925): provided that the intention so 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 direct to and in the name of “The Municipal Commissioner for 10[Brihan Mumbai]” on behalf of the Corporation, shall not operate to extinguish or cancel such debentures, but every debenture so issued shall be valid in all respects as if issued to and name of any other person. (3) The purchase by, or the transfer, assignment or endorsement to, the corporation or to the Municipal Commissioner on behalf of the corporation of any debenture issued by the Corporation or by the Board of Trustees for the Improvement of the City of Bombay 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.] 11[109AA. Annual examination of sinking funds.— (1) All sinking funds established under this Act shall be subject to annual examination by 12[the Chief Auditor, Local Fund Accounts,] who shall ascertain whether the cash and the value of the securities belonging thereto are actually equal to the 1 The brackets and letter “(g)” were substituted for the brackets and letter “(c)” by Bom. 76 of 1948, s. 12. 2 This proviso was inserted by Bom. 13 of 1933, s. 23(d). 3 The words “the Provincial Government” were substituted for the words “the Government” by the Adaptation of Indian Laws Order in Council. 4 This word was substituted for the word “Provincial” by the Adaptation of Laws Order, 1950. 5 This proviso was added by Mah. 34 of 1973, s. 7(c). 6 New sections 109A, 109B and 109C were inserted by Bom. 13 of 1933, s. 24. 7 The words “Provincial Government” were substituted for the words “Local Government” by the Adaptation of Indian Laws Order in Council. 8 This word was substituted for the word “Provincial” by the Adaptation of Laws Order, 1950. 9 The words “or of the Governor-General in Council” were omitted by the Adaptation of Laws Order, 1950. 10 These words were substituted for the words “Greater Bombay” by Mah. 25 of 1996, s. 2, Schedule. 11 This section was inserted by Bom. 76 of 1948, s. 13. 12 These words were substituted for the words “the Accountant General Bombay” by Mah. 42 of 1976, s. 7. 1888 : III] The Mumbai Municipal Corporation Act 157 amount which should be at the credit of such funds had investments been regularly made and had the rate of interest as originally estimated been obtained therefrom. (2) The amount which should be at the credit of a sinking funds shall be calculated on the basis of the present value of all future payments required to be made to such funds under the provisions of this Act, on the assumption that all investments are regularly made and the rate of interest as originally estimated as obtained therefrom. (3) The securities belonging to a sinking fund shall be valued for the purposes of this section at their current market value, except in the case of debentures issued under this Act or under any previous Act relating to the Municipal Government of the city or under the City of Bombay Improvement Act, 1898 (Bom. IV of 1898), or under the City of Bombay Improvement Trust Transfer Act, 1925 (Bom. XVI of 1925), which shall always be valued at par provided that the corporation shall make good immediately any loss which may accrue on the actual sale of such debentures at the time of the repayment of the loan. (4) The corporation shall forthwith pay into any sinking fund any amount which 1[the Chief Auditor, Local Fund Accounts,] may certify to be deficient, unless the 2[3[State] Government] specially sanctions a gradual readjustment. (5) If the cash and the value of the securities at the credit of any sinking fund are in excess of the amount which should be at its credit, 4[the Chief Auditor, Local Fund Accounts,] shall certify the amount of such excess sum and the corporation may thereupon transfer the excess sum to the municipal fund. (6) If any dispute arise as to the accuracy of any certificate made by 5[the Chief Auditor, Local Fund Accounts,] under sub-section (4) or (5), the corporation may, after making the payment or transfer, as the case may be, refer the matter to the 6[7[State] Government] whose decision shall be final. 8[109B. Corporation may take advance from banks and grant mortgage.— (1) Notwithstanding anything contained in sections 106, 108 and 109, the corporation may, with the previous sanction of the 9[10[State] Government] and for the purpose of discharging any liability arising out of the transfer to the corporation of the powers, duties, assets and liabilities of the Board of Trustees constituted under the City of Bombay Improvement Trust Transfer Act, 1925 (Bom. XVI of 1925), take from any bank or banks credit on a cash account to be opened and kept with such bank or banks in the name of the Corporation, for a sum not exceeding in the aggregate fifteen lakhs of rupees on the security of all or any of the taxes which the corporation are authorised to levy for the purposes of this Act. (2) The corporation may also, with the previous sanction of 11[the 12[State] Government] and subject to the provisions of this Act, mortgage any lands of, property vesting or re-vesting or belonging to the corporation in security of the payment of the amount of such credit or of the sums advanced from time to time on such cash account with interest thereon.