(1)The Municipality shall maintain sinking funds for the repayment of money borrowed on debentures issued and [shall pay by quarterly instalments into such sinking funds such sum as will be sufficient for the repayment within the period fixed for the loan of all moneys borrowed on debentures issued and in the event of default in payment of quarterly instalments, the grants due from Government shall be remitted to the Sinking Fund.] [Substituted by Act 14 of 1999, w.e.f. 24-3-1999.](2)All moneys paid into the sinking funds shall, as soon as possible, be invested by the Secretary in-(a)securities of the Central or the State Government; or(b)securities guaranteed by the Central or the State Government; and shall be invested in the joint names of the Secretary to the Government of Kerala Finance Department and the Secretary to the Government of Kerala in charge of Municipal Administration to be held by them as trustees for the purpose of repaying at due date the debentures issued by the Municipality. Every such investment shall be reported by the Secretary to the Council within fifteen days.(3)All dividends and other sums received in respect of any such investment shall as soon as possible after receipt, be paid into the sinking funds and invested in the manner laid down in sub-section (2).(4)Where any part of a sinking fund is applied in paying off any part of a loan before the period fixed for repayment the interest which would otherwise, have been payable on such part of the loan shall be paid into the sinking fund and invested in the manner laid down in sub-section (2).(5)Any investment made under this section may, subject to the provisions of sub section(2), be varied or transposed,
