Section 152 in Greater Hyderabad Municipal Corporation Act, 1955
152. Provisions as to exercise of borrowing powers.
- The exercise of the powers of borrowing conferred by this Act shall be subject to the following provisions, namely:(a)money shall not be borrowed for the execution of any work other than a permanent work including under this expression any work, of which the cost ought, in the opinion of the Government, to be spread over a term of years;(b)the money may be borrowed for such time, not exceeding sixty years, as the Corporation, with the sanction of the Government determine in each case;(c)the Corporation shall either pay off the money so borrowed, within the period sanctioned, by equal annual instalments of principal or of principal and interest, or in such other manner as may be approved by the Government, or they shall in every year set apart as a sinking fund and accumulate in the way of compound interest, by investing the same in the purchase of public securities, such sum as will, with accumulations in the way of compound interest, be sufficient, after payment of all expenses, to pay off the moneys so borrowed within the period sanctioned or within such other period as may be approved by the Government;(d)the Corporation may at any time apply the whole or any part of a sinking fund set apart under this section in or towards the discharge of the moneys for the repayment of which the fund has been established:Provided that the Corporation pay into the fund each time that interest which would have been received by them in respect of the sinking fund or the part of the sinking fund so applied, and accumulate, until the whole of the moneys borrowed are discharged, a sum equivalent to the interest which would have been so received;(e)the investment every year of any sum set apart as portion of the principal of a sinking fund shall be made within fifteen days after the day on which the second half-yearly payment of interest is due by the Corporation in respect of the loan for the repayment of which such sinking fund is established; and the reinvestment of any sum received by the Corporation on account of interest on moneys appertaining to a sinking fund already invested, and the investment of any sum payable into the fund under clause (d) as the equivalent of interest which the Corporation would have received, if the sinking fund or a part thereof had not been applied in any manner authorised by the said clause, shall be made within one month from the day on which such interest is received or from the day on which such interest would have been received, as the case may be:Provided that during the year in which the loan for repayment of which a sinking fund has been established is due for repayment, the sum to be set apart as portion of the principal of such sinking fund and the sum received on account of interest on moneys forming part of such sinking fund may be retained by the Corporation in such form as they think fit;(f)where money is borrowed for the purpose of discharging a previous loan, the time for repayment of the money so borrowed shall not, unless sanctioned by the Government, extend beyond the unexpired portion of the period for which the original loan was sanctioned and shall in no case be extended beyond the period of sixty years from the date of the original loan.
