State Act

The Mumbai Municipal Corporation Act.

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 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.