(1)The accumulations in the sinking fund shall, subject to the prior approval of the Government, be invested in the promissory notes and other securities of the Central or the State Government or otherwise and shall be held in trust for the purpose of this Act by two trustees one being the Board and the other a person appointed by Government.(2)The Board may apply the whole or any part of sums accumulated in the sinking fund in or towards the discharge of the moneys for the repayment of which the fund has been established; provided that it pays into the fund in each year and accumulates until the whole of the moneys borrowed are discharged, sum equivalent to the interest which would have been produced by the sinking fund, or the part of the sinking fund so applied.
