Section 24 in The Gujarat Water Users' Participatory Irrigation Management Act, 2007
24. Sinking Fund.
(1)Whenever the Association raises a loan for the purposes of this Act, it shall establish a fund to be called a Sinking Fund and shall pay into it on such dates as may be approved by the Competent Authority such sum as will, with accumulations of compound interest, be sufficient after payment of all expenses to pay up the loan within the stipulated period:Provided that if, at any time, the sum standing to the credit of the Sinking Fund is of such amount that if allowed to accumulate at compound interest, it is sufficient to repay the loan within the stipulated period, then, with the permission of the Competent Authority, further payments into such fund may be discontinued.(2)The Association may apply a Sinking Fund or any part thereof in or towards the discharge of the loan for which the fund is established and, until such loan or part is wholly discharged, shall not apply the same for any other purpose.
