Section 118 in The Chhattisgarh Municipal Corporation Act, 1956
118. Application of sinking fund.
- Until any loan is wholly repaid, the Corporation shall not apply the sinking fund established in respect,of that loan to any purpose other than the repayment of that loan :Provided that when any loan or part thereof, is consolidated under Section 115, the Corporation shall transfer to the sinking fund established for such consolidated loan, the sum standing to the credit of the sinking fund of the original loan, or if part only of a loan is consolidated, then such part of the sum standing to the credit of sinking fund of the original loan as is proportionate to the amount of the original loan which is incorporated in the consolidated loan.
