It at any time, the sum standing at the credit of a Sinking Fund established Power to discontinue

under section 112 for the repayment of any loan is of such amount that is payment towards allowed to accumulate at the rate of interest sanctioned under the first proviso to Sinking Fund. sub-section (I) of section 109, it will be sufficient to pay off the loan within the period approve by the State Government under the said proviso, further payments towards such fund may be discontinued. 115. (1) All moneys paid into a Sinking Fund shall, as such as possible, be Investment invested by the Empowered Standing Committee in — of amount at the credit of

1. (a) Government securities, or Sinking Fund.
2. (b) securities guaranteed by the Central Government or any State Government, or
3. (c) debentures issued by the Municipality, or
4. (d) such other public securities as may approved by the State Government,
5. (e) and such other securities as may be held byte Municipality for the purpose of repayment of loans from time to titre raised by it by issue of debentures or otherwise.

1. (2) All dividends and other sums received in respect of any investment under sub-section ( 1) shall, as soon as possible after their receipt, be paid into the Sinking Fund and shal1 be invested in the manner laid down in that sub-section.
2. (3) Moneys standing at the credit of two or more Sinking Funds may, at the discretion of the Empowered Standing Committee, be invested together as a common fund, and it shall not be necessary for the Empowered Standing Committee to allocate the securities held in such investments to the several Sinking funds.
3. (4) Subject to the provision of sub-section (1), any investment made under this section may, from time to time, be varied or transposed. 116. (1) For the purpose of investment of any portion of the Municipal Fund, Power of including Sinking Fund, in the debentures issued by the Municipality for raising a Municipality to loan, the Municipality may, within the limits set by the comprehensive debt reserve a portion of limitation policy framed under section | 08, reserve and set apart any portion of debentures, issued such debentures for issue at par thereto in the name of the Municipality provided for raising loan, for that the intention so to reserve and set apart such debentures shall have been investment. notified as a condition of raising the loan.
4. (2) The issue of any debentures by the Municipality under sub-section (1) shall not operate to extinguish or cancels such debentures, but issued to, and in the name of, any other person.
5. (3) The purchase by, or the transfer, assignment or endorsement to, the Municipality 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.