Section 20 in The U.P. Avas Evam Vikas Parishad (Raising of Loans) Rules 1972
20. Establishment, maintenance and application of sinking fund.
(1)Whenever a loan has to be repaid from a sinking fund the Board shall establish such a fund and shall pay into it every year until the loan is repaid a sum so calculated that if regularly paid throughout the period agreed upon by the Board it would with accumulations in the way of compound interest, be sufficient, after payment of all expenses to pay of the loan at the end of that period.(2)The rate of interest on the basis of which the sum referred to in sub-rule (1) shall be calculated shall be such as may be determined by the State Government.(3)The Board may apply the sinking fund or any part thereof in or towards the discharge of the loan for which such fund is established and until such loan or part is wholly discharged, shall not apply the same for any other purpose provided that any loan or part thereof has been consolidated under rule 24 the Housing Commissioner shall transfer to the sinking fund of the consolidated loan such parts of the sinking funds of the original loans as may be proportionate to the amount of the original loans incorporated in the consolidated loan.
