Government.

All debentures issued under this chapter shall be in such Form, and shall Form and effect of be transferable in such manner, as the Municipality may, by regulations, debentures. determine and the right to sue in respect of the moneys secured by any of such debentures shall vest in the holders thereof from the time, being without any preference by reason of some such debentures being prior in date to others. 119. (1) The Chief Municipal Executive Officer/ Municipal Executive Officer Annual statement. shall, at the end of every year, prepare, and submit to the Municipality, an annual statement showing —

1. (a) the amount which has been paid into the Sinking fund or Sinking Funds during the year under section 1 12,
2. (b) the date of the last investment made during the year,
3. (c) the aggregate amount of the securities in the hand of the Municipality at the end of the year, and
4. (d) the aggregate amount which has been applied for the purpose of repayment of the loan under section 115.

1. (2) A copy of every such annual statement shall be submitted to the State Government by the Chief Municipal Executive Officer Municipal Executive Officer. 120. ( 1) All Sinking Funds established under this Act shall be subject to annual examination by the Auditor appointed under section 92 who Annual examination shall ascertain whether the cash and the value of securities belonging to such of Sinking Funds. Sinking funds are equal to the amount which should be at the credit of such Sinking Funds, had the investment under section 115 been regularly made and had the interest accruing from such investments been regularly obtained.
2. (2) The amount which should be at the credit of a Sinking Fund shall be calculated on the basis of the sums paid into such Sinking Fund under section 112.
3. (3) The value of securities belonging to a Sinking Fund shall be the current value of such securities unless such securities become due for redemption at par with, or above, their face value before maturity in which case their current value shall be taken as their redemption value, except in the case of the debentures issued by the Municipality which shall always be valued at par with their face value, provided the Municipality shall make good immediately any loss owing to the sale of such debentures for repayment of the loan raised under sub-section (1) of section 109.
4. (4) The Municipality shall forthwith pay into a Sinking Fund such amount as the Auditor appointed under section 92 may certify to be deficit in respect of such Sinking Fund, unless the State Government specially sanctions a gradual readjustment of such deficit.
5. (5) If the cash and the value of the securities at the credit of a Sinking Fund are in excess of the amount which should be at the credit of such Sinking Fund, the Auditor appointed under section 92 shall certify the amount of such excess sum, and the Municipality shall, thereupon, transfer the excess sum into the Municipal Fund General Account.
6. (6) If any dispute arises as to the accuracy of any deficit or excess referred to in the certificate under sub-section (4) or sub-section (5), the Municipality may, after payment of such deficit or after transfer of such excess" as the case may be, refer the matter to the State Government whose decision thereon shall be final. 121. (1) The Municipality may borrow money from the State Government for Power of carrying out the purposes of this Act on such terms and conditions as the State Municipality to Government may determine. borrow money from State Government
7. (2) if any money borrowed by the Municipality from the State Government before and attachment of the commencement of this Act or under subsection (1) is not repaid, or any Municipal fund for interest due in respect thereof is not paid, according to the terms and conditions recovery of such of such borrowing, the State Government may attach the Municipal Fund or any money. portion thereof.
8. (3) After such attachment, an officer as may be appointed in this behalf by the State Government shall deal with the Municipal Fund, or any portion thereof, so attached, in such manner as ire thinks fit and may do all acts in respect thereof which any municipal authority or an officer or other employee of the Municipality might have done under this Act, if such attachment had not taken place, and may apply such Municipal Fund or the portion thereof, as the case may be, for payment of the arrear of the principal amount and the interest incurred on account of the attachment and subsequent proceeding : Provided that no such attachment shall defeat or prejudice any debt for the recovery of which the Municipal fund was previously charged under any law for the time being in force, and all such prior debt shall be paid out of the Municipal