Section 160 in Karnataka Municipal Corporations Act, 1976
160. Maintenance and investment of sinking funds.
(1)The corporation shall maintain sinking funds for the repayment of money borrowed on debentures issued and shall pay by quarterly instalments into such sinking funds such sum as will be sufficient for the repayment within the period fixed for the loan of all moneys borrowed on debentures issued.(2)All moneys paid into the sinking funds shall, as soon as possible, be invested by the Commissioner in,-(a)securities of the Government or the Government of India, or(b)securities guaranteed by the Government, and shall be invested in the joint names of the Commissioner and Secretary to Government, Finance Department and the Controller, State Accounts Department, 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 corporation within fifteen days.(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 fund and invested in the manner laid down in sub-section (2).(4)When any part of a sinking fund is invested in corporation debentures, 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 (2).(5)Any investment made under this section may, subject to the provisions of sub-section (2), be varied or transposed.
