State Act

THE UTTAR PRADESH MUNICIPAL CORPORATION ACT, 1959

158- (1) All moneys paid into a sinking fund shall, as soon as possible, be invested by the [Corporation]1 in the name of the Mukhya Nagar Adhikari- (a) in Government securities, or (b) in securities guaranteed by Government, or (c) in debentures of the [Corporation]1; and shall be held by the [Corporation]1, for the purpose of repaying from time to time the, debentures issued by it: (2) All dividends, interest and, other sums received in respect of any, such investment shall, as soon as possible after receipt, be paid into the appropriate sinking .fund and invested in the manner prescribed by sub- section (1). (3) Money standing to the credit of two or more, sinking funds may, at the discretion, of the [Corporation]1, he invested in a common fund and it shall not be necessary for the [Corporation]1 to allocate the securities held in such investments among the, several sinking funds. (4) When any part of sinking fund is invested in the debentures of the [Corporation]1 or is, applied to paying of any part of a loan before the period fixed, for repayment, the interest which would, otherwise have been payable on such debentures or on such part of the loan, shall be paid into the sinking fund and, investment in the manner laid down in sub-section (1). (5) Any investment made under this section may, subject to the provisions of sub-section (I), be varied or transposed: Provided that whenever any transposition is made the sinking fund from which any part is transposed shall be increased by a sum equal to, the sum transposed. (6) During, the year in which the, loan for the repayment of which, a sinking fund is, established is due for repayment, the sum to be set apart as portion of the principal of such sinking fund and the sum received on account of interest on moneys forming part of such sinking fund may be retained by the [Corporation]1 in such form as it thinks fit.