Section 172 in The Orissa Municipal Corporation Act, 2003
172. Power of Corporation to reserve a portion of debentures issued for raising loans for investment.
(1)For the purpose of investment of any portion of the Corporation Fund, including Sinking Fund, in the debentures issued by the Corporation for raising a loan, the Corporation may, within the limits set by the comprehensive debt limitation policy framed under Section 164, reserve and set apart any portion of such debentures for issue at par thereto in the name of the Corporation, provided that the intention so to reserve and set apart such debentures shall have been notified as a condition of raising the loan.(2)The issue of any debentures by the Corporation under Sub-section (1) shall not operate to extinguish or cancel such debentures, but every such debenture shall be valid in all respects as if it were issued to, and in the name of any other person.(3)The purchase by, or the transfer, assignment or endorsement to, the Corporation of any debenture issued by it shall not operate to extinguish or cancel such debenture and every such debenture shall be valid and negotiable in the same manner and to the same extent as if it were held by, or transferred, assigned or endorsed to, any other person.
