State Act

The Greater Hyderabad Municipal Corporation Act, 1955.

153. (1) In respect of any sinking fund 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 securties, 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 Government shall have been duly obtained under section 149, 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 the city or on behalf of the Corporation shall not operate to extinguish or cancel debentures, but every debenture so issued shall be valid in all respects 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 or to the Commissioner on behalf of the Corporation of any debenture issued by the Corporation for the improvement of the City 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 extent as if held by, or transferred, assigned or endorsed to any other person.