(1)A register of Government and other securities held by the municipality as its property should be maintained in Form No. XXVI. This will show all investments belonging to the municipality, the purpose for which each is held being stated in the column provided for the purpose and the orders of Government, if any, being quoted against each. No investment should be written off this register unless disposed of absolutely by sale or otherwise. Securities merely made over to the Accountant General for safe custody should not be written off. The total amount of the securities held in trust by him and kept invested should be verified annually in January of every year if they are in the safe custody of the Accountant General.(2)If they are in the custody of the Chairman himself they should be verified by the auditor at the time of audit.(3)The above register will also show the interest due and the realisations on account of it from time to time. Care should be taken to see that the amounts due are realised on due dates and that there are no outstanding. Investments exempt from income-tax should be indicated in the remarks column of the Register together with the-authority therefore.(4)None of these investments, other than those made out of the general balance, should be deposited of except for the specific purpose for which they may have been mad£. If any investments are made under the orders of Government, they should not be disposed of without the sanction of Government. No portion of the general balance of a municipality can be invested without the special sanction of the Government who will decide as to the necessity for investment in each instance with reference to the general principle that such investments are permissible in the following cases only :(a)What it is proposed to create sinking funds for the payment of debt;(b)When some large project is in contemplation for which it may be desirable gradually to save and invest a part of the proceeds of ordinary taxation;(c)When no large project is in contemplation and the fund happens to receive a large windfall from some other source than taxation and the municipality has no particular object to which it can be immediately applied.Loan Register
