State Act
Section 20-A. Funds of the State Authority
20-A (1) The State Authority shall have and maintain its own fund i.e. funds received from the Local Development authorities as well as the funds allocated by the State Government to it. (2) The fund shall be applied towards meeting the expenses incurred by the State Authority in the administration of this Act or for any other purposes/functions entrusted by it to the concerned Local Development Authority. (3) The State Authority shall have the power to decide the quantum of fund to be allocated and to allocate the same amongst the Local Development Authorities / Local bodies in order to strengthen them financially. (4) Subject to any directions of the State Government, the State Authority may keep in current account of any Scheduled Bank such sum of money out of its fund as it may think necessary for meeting its expected current requirement and invest any surplus money in such manner as it thinks fit. (5) The State Government may, after due appropriation in that behalf, make such grants, advances and loans to the State Authority as the State Government may deem necessary for the performance of the functions of the State Authority under this Act and all grants, loans and advances made shall be on such terms and conditions as the State Government may determine. (6) The State Authority may borrow money by way of loans or, debentures or from such sources (other than the State Government) and on such terms and conditions as may be approved by the State Government. (7) The State Authority shall maintain a sinking fund for the repayment of moneys borrowed under sub-section (5) and (6) and shall pay every year into the sinking fund such sum as may be sufficient for repayment of all moneys so borrowed within the period fixed. (8) The sinking fund or any part thereof shall be applied in or towards, the discharge of the loan for which such fund was created, and until such loan is wholly discharged it shall not be applied for any other purpose.]3