Section 160(2) in Karnataka Municipal Corporations Act, 1976
(2)All moneys paid into the sinking funds shall, as soon as possible, be invested by the Commissioner in,-(a)securities of the Government or the Government of India, or(b)securities guaranteed by the Government, and shall be invested in the joint names of the Commissioner and Secretary to Government, Finance Department and the Controller, State Accounts Department, to be held by them as trustees for the purpose of repaying at due date the debentures issued by the corporation. Every such investment shall be reported by the Commissioner to the corporation within fifteen days.
