Section 148 in Chennai City Municipal Corporation Act, 1919
148. Maintenance and investment of sinking funds.
(1)The corporation shall maintain sinking funds for the re-payment of money borrowed on debentures issued and shall pay by quarterly instalments into such sinking funds such sum as will be sufficient for the re-payment within the period fixed for the loan of all moneys borrowed on debentures issued.(2)All money paid into the sinking funds shall, as soon as possible, be invested [by the commissioner] [Substituted for the words 'under the orders of the council' by section 85(i) of the Chennai City Municipal (Amendment) Act, 1936 (Tamil Nadu Act X of 1936).] in-(a)securities of [the Central or the State Government] [The words 'the Central or the Provincial Government' were substituted for the words 'the Government of India' by the Adaptation Order of 1937 and the words 'State' was substituted for 'Provincial' by the Adaptation Order of 1950.], or(b)securities guaranteed [by the Central or the State Government] [The words 'the Central or the Provincial Government' were substituted for the words 'the Government of India' by the Adaptation Order of 1937 and the words 'State' was substituted for 'Provincial' by the Adaptation Order of 1950.], or(c)[ [Chennai] [Substituted for original clause (c) by section 85(iii) of the Madras City Municipal (Amendment) Act, 1936 (Tamil Nadu Act X of 1936).], [Calcutta and Bombay] [Substituted for the words 'Calcutta, Bombay and Karachi Municipal debentures' by the Adaptation (Amendment) Order of 1950.] municipal debentures)] [or] [Added by Tamil Nadu Act 42 of 1974.](d)[ fixed deposit in any corresponding new bank as defined in clause (d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Central Act V of 1970)] [Added by Tamil Nadu Act 42 of 1974.]and shall be invested in the joint names of [the Secretary to the Government of [Tamil Nadu] [Substituted for the words 'the Chief Secretary to the Government of Madras' by section 2 of the Madras City Municipal (Amendment) Act, 1924 (Tamil Nadu Act IV of 1924).], Finance Department] [Substituted far the original proviso by section 84(1)(iii) of the Madras City Municipal (Amendment) Act, 1936 (Tamil Nadu Act X of 1936).] and the [Examiner of Local Fund Accounts, [Tamil Nadu] [The words 'Examiner of Local Fund Accounts, Madras' were substituted for the words 'Accountant General of Madras' by section 56 of the Madras City Municipal (Amendment) Act. 1961 (Tamil Nadu Act 56 VI 1961).]] to be held by them as trustees for the purpose of repaying at due date the debentures issued by the corporation. [Every such investment shall be reported by the commissioner to the council within fifteen days.] [Added by section 85(iii) of the Madras City Municipal (Amendment) Act. 1936 (Tamil Nadu Act X of 1936).](3)All dividends and other sums received in respect of any such investment shall, as soon as possible after receipt, be paid into the sinking funds and invested in the manner laid down in sub-section (2).(4)When any part of a sinking fund is invested in [Chennai] [Substituted for the word 'Madras' by Tamil Nadu Act 28 of 1996.] municipal debentures, or is applied in paying off any part of a loan before the period fixed for re-payment, 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 (2).(5)Any investment made under this section may, subject to the provisions of sub-section (2), be varied or transposed.
