(1)All property vested in a panchayat under this Act, and all funds received by it in accordance, with the provisions of this Act, and all sums accruing to it under the provisions of any law for the time being in force, shall be applied subject to the provisions and for the purposes of this Act and all such funds and sums shall be kept in such custody as may be prescribed.[1A) The village panchayat shall obtain from the gram sabha a certificate of utilization of funds by that panchayat for the plans, programmes and projects referred to in sub-clause (i) of clause (b) of sub-section (3) of section 4.] [Sub-section (IA) added by Gujarat 5 of 1998 (w.r.e.f. 20-12-1997).](2)Any surplus funds in the hands of a panchayat which may not be required for current charges, may be invested in such manner as may be prescribed.(3)In the case of any loan taken by a panchayat, the payment of the principal or instalment thereof and the payment of interest thereon shall be a first charge on its fund.
