Section 113 in The Gujarat Provincial Municipal Corporations Act, 1949
113. Investment of sinking fund.
(1)All money paid into a sinking fund shall within one month of the date on which the payment was due to be made under subsection (1) of section 112 be invested in public securities.(2)All interest and other sums received in respect of any such investment shall be paid into the sinking fund and shall, within one month of receipt, be 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, be invested in a common fund, and it shall not be necessary for the Corporation to allocate the securities held in such investments among the several sinking funds.(4)When any part of a sinking fund is invested in debentures issued by the Corporation or is applied in paying off 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 invested in the manner laid down in sub-section (1).(5)Any investment made under sub-section (1) may be varied from time to time or may be transferred from one sinking fund to another:Provided that the fund from which the transfer is made shall be reimbursed the value of such investment as on the date on which the transfer is made.(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 in such form as it thinks fit.
