Amendment status not verified — confirm the current text below against the official source.
[(1) There shall be established, for each municipality a fund called municipal fund and to the credit whereof shall be placed all sums received including the grants-in-aid from the Consolidated Fund of the State, and all loans raised, by or on behalf of the municipality.]3 (2) Nothing in this section shall affect any obligations of a Municipality arising from a trust legally imposed upon or accepted by it. [Powers of the Municipality to borrow money 114-A For performance of its duties and functions, whether mandatory or discretionary, a Municipality may with the previous sanction of the State Government and subject to the rules prescribed in this behalf, raise loans in the open market or from any financial institution by issue of debentures or against any other security.]2 Custody and investment of municipal fund