Section 109AA in The Mumbai Municipal Corporation Act, 1888
109AA. [ Annual examinations of sinking funds. [This section was inserted by Bombay 76 of 1948, Section 13.]
(1)All sinking funds established under this Act shall be subject to annual examination by [the Chief Auditor, Local Fund Accounts,] who shall ascertain whether the cash and the value of the securities belonging thereto are actually equal to the amount which should be at the credit of such funds had investments been regularly made and had the rate of interest as originally estimated been obtained therefrom.(2)The amount which should be at the credit of a sinking fund shall be calculated on the basis of the present value of all future payments required to be made to such fund under the provisions of this Act, on the assumption that all investments are regularly made and the rate of interest as originally estimated is obtained therefrom.(3)The securities belonging to a sinking fund shall be valued for the purposes of this section at their current market value, except in the case of debentures issued under this Act or under any previous Act relating to the municipal government of the city or under the City of Bombay Improvement Act,- 1898, or under the City of Bombay Improvement Trust Transfer Act, 1925, which shall always be valued at par, provided that the corporation shall make good immediately any loss which may accrue on the actual sale of such debentures at the time of the repayment of the loan.(4)The corporation shall forthwith pay into any sinking fund any amount which [the Chief Auditor, Local Fund Accounts,] [These words were substituted for the words 'the Accountant General, Bombay,' by Maharashtra 42 of 1976, section 7] may certify to be deficient, unless the [ [State] [The words 'Provincial Government' were substituted for the words 'Local Government' by the Adaptation of Indian Laws Order in Council.] Government] specially sanctions a gradual readjustment.(5)If the cash and the value of the securities at the credit of any sinking fund are in excess of the amount which should be at its credit [the Chief Auditor, Local Fund Accounts,] [These words were substituted for the words 'the Accountant General, Bombay,' by Maharashtra 42 of 1976, section 7] shall certify the amount of such excess sum and the corporation may thereupon transfer the excess sum to the municipal fund.(6)If any dispute arises as to the accuracy of any certificate made by [the Chief Auditor, Local Fund Accounts,] [These words were substituted for the words 'the Accountant General, Bombay,' by Maharashtra 42 of 1976, section 7] under sub-section (4) or (5) the corporation may, after making the payment or transfer, as the case may be, refer the matter to the [ [State] [The words 'Provincial Government' were substituted for the words 'Local Government' by the Adaptation of Indian Laws Order in Council.] Government] whose decision shall be final.]
