(1)The municipal fund and all property vested in a [Municipality] [Substituted by U.P. Act No. 12 of 1994.] shall be applied for the purposes, express or implied, for which, by or under this or any other enactment, powers are conferred or duties or obligations are imposed upon the [Municipality] [Substituted by U.P. Act No. 12 of 1994.].(2)Provided that the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] shall not incur any expenditure for acquiring or renting land beyond the limits of the [municipal area] [Substituted by U.P. Act No. 12 of 1994.] or for constructing any work beyond such limits except, -(a)with the sanction of the [State Government] [Substituted by ALO 1950.]; and(b)on such terms and conditions as the [State Government] [Substituted by ALO 1950.] imposes.(3)Provided also that priority shall be given in the order set forth below, to the following liabilities and obligations of a [Municipality] [Substituted by U.P. Act No. 12 of 1994.], -(a)[ the payment of salaries and allowances of Safai Mazdoors;] [Substituted by U.P. Act No. 15 of 1983.](a1)the liabilities and obligations arising from a trust legally imposed upon, or accepted by the [Municipality] [Substituted by U.P. Act No. 12 of 1994.];(b)the re-payment of, and the payment of interest on, any loan incurred under the provision of the Local Authorities Loans Act, 1914;(c)[except the payments under clause (a), the payment of establishment charges] [Substituted by U.P. Act No. 15 of 1983.], including such contributions as are referred to in Section 78, and the salary, allowances and pension of an executive officer appointed by the [State Government] [Substituted by ALO 1950.];(d)any sum ordered to be paid from the municipal fund under subsection (3) of Section 35, sub-section (2) of Section 36, Section 126, sub-section (3) of Section 163 or sub-section (3) of Section 320.[Explanation. - For the purposes of this sub-section, a person shall be deemed to be a Safai Mazdoor if he is employed by the] [Substituted by U.P. Act No. 15 of 1983.] [Municipality] [Substituted by U.P. Act No. 12 of 1994.] for the purposes of sweeping and cleaning of municipal roads, lanes, pathways, drains, sewers, latrines and urinals, carrying of dead animals and refuge and for other jobs of the like nature.
