Establishment of a separate fund

(1) There shall be constituted for the State of Karnataka a fund called the Karnataka Religious and Charitable Institutions Annuity Fund. (2) The fund specified in sub-section (1) shall consist of,— (a) the amount of premium collected from the tenants or sub-tenants of land belonging to the institutions referred to in section 106; (b) the interest earned on the amounts in the said fund; (c) such amount transferred from the consolidated fund of the State as may be necessary to make up the deficit, if any, where the amounts referred to in the above clauses are insufficient to pay the annuities to such institutions. (3) The amount specified in clause (a) of sub-section (2), shall first be credited to the Consolidated Fund of the State. Such amount and the amount referred to in clause (c) of sub-section (2), shall thereafter, under appropriation duly made by law in this behalf, be entered in and transferred to the said fund. The amount at credit in the said fund may be invested in such manner as the State Government may direct. (4) The annuities payable to the said institutions shall be paid from out of the said fund.