Section 32 in The Inland Waterways Authority Of India Rules, 1986
32. Reserve Fund.
(1)In respect of every loan raised by the Authority, not being a loan repayable before the expiration of one year from the date of the loan, the Authority shall set apart a sum half yearly, out of its income in a reserve fund, sufficient to liquidate the loan within a period which shall not in any case exceed thirty years.Provided that a reserve fund need not, in the absence of any stipulation to that effect, be established in the case of loans taken by the Authority from the Central Government or any State Government.(2)The sums set apart by the Authority under sub-rule (1) shall be invested in securities of the Central Government or in such other securities as the Central Government may approve in this behalf, and shall be held in trust for the purposes of the Act by the Authority.(3)The Authority may apply the whole or any part of the sums accumulated in any reserve fund in or towards the discharge of the loan liabilities for the repayment of which the fund has been established.Provided that Authority pays into the fund each year and accumulates until the whole of the money borrowed is discharged, a sum equivalent to the interest which would have been produced by the reserve fund, or the part of the reserve fund, so applied.(4)A reserve fund established for the liquidation of any loan shall be subject to annual examination by such person as may be appointed by the Central Government in this behalf and the person so appointed shall ascertain whether the cash and the current market value of the securities at the credit of the Fund are actually equal to the amount which would have accumulated had investments been regularly made and rate of interest as originally estimated obtained thereon.(5)The Authority shall pay forth with into the reserve fund any amount which the person appointed under sub-rule (4) to conduct the annual examination of the Fund may certify to be deficient unless the Central Government specifically sanctions a gradual readjustment.(6)If the cash and current market value of the securities at the credit of a reserve fund are in excess of the amount which should be at its credit, the person appointed under sub-rule (4) shall certify the amount of this excess and the Authority may, with the previous sanction of the Central Government reduce or discontinue the half-yearly contributions to the reserve fund.
