- [(1) The municipal fund shall be kept in the Government treasury or sub-treasury or in the State Bank of India or with the previous sanction of the State Government, in the Uttar Pradesh Co-operative Bank or in a Scheduled Bank.] [Substituted by U.P. Act No. 26 of 1964.](2)In places where there is no such treasury or sub-treasury or bank, the municipal fund may be kept with a banker, or person acting as a banker who has given such security for the safe custody and re-payment on demand of the fund so kept as the [State Government] [Substituted by ALO 1950.] may in each case think sufficient :(3)Provided that nothing in the foregoing provisions of this section shall be deemed to preclude a [Municipality] [Substituted by U.P. Act No. 12 of 1994.] from, with the previous sanction of the State Government, investing in any of the securities described in Section 20 of the Indian Trust Act, 1882, or placing on fixed deposit with a Presidency Bank and portion of its municipal fund which is not required for immediate expenditure.
