Section 99 in The City of Nagpur Corporation Act, 1948
99. Investment of sinking fund. - (1) All money paid into a sinking fund shall, as soon as possible be invested by the Corporation in -
(a)Government securities, or(b)Securities guaranteed by Government, or(c)Nagpur Municipal debentures, and shall be held by the Corporation for the purpose of repaying from time to time the debentures issued by it.(2)All dividends and other sums received in respect of any such investment shall, as soon as possible after receipt, be paid into the appropriate sinking fund and invested in the manner prescribed by sub-section (1).(3)Money standing to the credit of two or more sinking funds may, at the discretion of the Corporation, be invested in a common fund, and it shall not be necessary for the Corporation to allocate the securities held in such investments among the several sinking funds.(4)When any part of a sinking fund is invested in Nagpur municipal debentures or is applied to paying off any part of a loan before the period fixed for repayment, the interest which would otherwise have been payable on such debentures or on such part of the loan, shall be paid into the sinking fund and invested in the manner laid down in sub-section (1).(5)Any investment made under this section may, subject to the provisions of sub-section (1), be varied or transposed:Provided that the former sinking fund shall be increased by a sum equal to the sum taken for the purposes of transfer to the latter sinking fund.
