Amendment status not verified — confirm the current text below against the official source.
Substituted by section 3 of Chapter II of U.P.Act No.12 of 1994. [The Uttar Pradesh [Municipal Corporation]1 Act, 1959] [Section 154] CHAPTER VIII Borrowing Powers power of [Corporation]1 to borrow money 154- (1) The, [Corporation]1 may, with the previous sanction of the State Government and subject to the provisions of section 31 of the Reserve Bank of India Act, 1934 from time to time, borrow or re-borrow and take up at interest by the issue of debentures or otherwise on the security of any immovable property vested in the [Corporation]1 or proposed to be acquired by it under this Act or of ,all or any taxes, duties, tolls, cesses, fees and dues which it is authorized to levy for the purposes of this Act, or of all or any of those 363 securities, any sum necessary for the "purpose of- (a) defraying any costs, charges or expenses; incurred by, it in the execution of this Act ; (b) For discharging any loan contracted under' this Act or any other loan or debt for the repayment of. which the [Corporation]1 is liable ; (c) generally for carrying out the purposes of this Act, including the advance of lonas authorized thereunder: Provided that- (i) No loan shall be raised for the execution of any work other than a permanent work which expression shall include any work of which the cost should, in the opinion of the State Government, be spread over a term of years; (ii) no loan shall: be raised unless the State Government has approved the purpose and amount of the loan, the rate of interest and other terms thereof including the date of flotation and the period and method of repayment; (iii) The period within which the loan is to be repaid shall in no case exceed thirty years. (2) When any sum of money has been borrowed or re-borrowed under sub section (1)- (a) no portion thereof shall without the previous sanction of the State Government, be applied to any purpose other than that for which it was borrowed; and (b) no portion of any sum of money borrowed or re-borrowed for the execution of any work shall be applied to the payment of salaries or allowances of any [Corporation]1 officer or servant other than those who are exclusively employed upon the work for the construction of which the money was borrowed, or for meeting expenditure of recurring nature: Provided that such share of the cost on account of the salaries and allowances of [Corporation]1 officers or servants employed in part upon the preparation of plans and estimates or the construction or supervision of or upon the maintenance of the accounts of such work as the Executive Committee may fix, may be paid out of the sum so borrowed or re- borrowed. 1.Substituted by section 3 of Chapter II of U.P.Act No.12 of 1994. [The Uttar Pradesh [Municipal Corporation]1 Act, 1959] [Section 155- 157] power of [Corporation]1 to borrow from banks against public securities 155- Notwithstanding anything contained in section 154 but subject to the provisions of section 31 of the Reserve Bank of India Act, 1934 the [Corporation]1 may borrow for the purposes of this Act from any bank or banks in which the surplus moneys at the credit of the [Corporation]1 Fund may be deposited, against any public securities in which for the time being the cash balance for the [Corporation]1 may be invested; Provided that in the case of an indebted [Corporation]1, borrowing under this section shall be made with the previous approval of the State' Government. 364 when and how loan should be repaid 156- (1) Every loan raised under section 154 shall be paid within the time approved therefor under the said section and by such of the following methods as may be approved under the said provision, namely- (a) by payment from a sinking fund established under section 157 in respect of the loan; (b) by equal payments of principal and interest ; (c) from any sum borrowed for the purpose under clause (b) of sub- section (1) of section 154; (d) partly from a sinking fund, established under section 157 in respect of the loan and partly from money borrowed for the purpose under clause (b) of sub-section (1) of section 154; (e) By such other method including drawings as the State Government may specify. (2) In the case of a loan borrowed before the appointed day, repayment shall normally be made by the method which was in operation for the repayment of such loan or if there was no such method, by any of the methods specified in sub-section (1). maintenance and application of sinking fund 157- (1) Whenever the repayment of a loan from a sinking fund has been sanctioned under proviso (ii) to sub-section (1) of section 154, the [Corporation]1 shall establish such a fund and shall pay into it, on such dates as may have been approved under the said proviso such sum as will, with accumulations of compound interest, be sufficient after payment of all expenses to payoff the loan within the period approved; Provided that if at any time the sum standing to the, credit of the sinking fund established for the repayment of any loan is of such amount that, if allowed to accumulate at compound interest it will be sufficient to repay the loan within the period approved, then, with the permission of the State Government further payments into such fund may be discontinued. (2) The [Corporation]1 may apply a sinking fund, or any part thereof, in or towards the discharge of the loan for which such fund is established, and, until such loan or part is wholly discharged, shall not apply the same for any other purpose.