(1)The Commissioners shall, in respect of each loan contracted by them by way of debenture under sections 19 and 22, pay into a sinking fund half-yearly out of their income before making any other disbursements such amounts as will suffice to liquidate the nominal amount of each such loan within such period as the 2[Central Government] may in each case direct, provided that such period may exceed the term of the debenture loan but shall in no case exceed sixty years.(2)Application of sinking fund.- The Commissioners in meeting may, at any time, apply the whole or any part of a sinking fund, set apart under this section, in or towards the discharge of the moneys for the repayment of which the fund has been established:Provided that they pay into the fund in each year, and accumulate, until the whole of the moneys borrowed are discharged, a sum equivalent to the interest which would have been produced by the sinking fund, or the part of the sinking fund so applied.(3)Investment of sinking fund.- Such sinking fund shall be invested in 3[public securities or in such other securities as the Central Government may approve in this behalf], in the names of two trustees, one being the Commissioner, and the other a person to be appointed by the 4[Central Government].
