Power of Corporation to consolidate loans

Power of Corporation to consolidate loans.-

1. (1) Notwithstanding anything contained in this Act, the Corporation may consolidated all or any of its loans or any part of a loan and for that purpose may invite tenders for a new loan to be called ―the Corporation Consolidated Loan‖ and invite holders of Municipal debenture to exchange their debenture for scrip of such loan.
2. (2) The terms of every such consolidated loan and the rates at which exchange into a consolidated loan shall be permitted shall, save in the case of a loan granted by the Government, be subject to the previous approval of the Government.
3. (3) Save in the case of a loan granted by the Government, the period for the extinction of any such consolidated loan shall not, without the sanction of the Government extend beyond the furthest date within which any of the loans to be consolidated would otherwise be repayable.
4. (4) The Corporation shall establish a sinking fund for the repayment of every such consolidated loan.
5. (5) The provisions of section 114 shall apply to each sinking fund established under sub-section (4): Provided that, in calculating the sum to be paid into any such sinking fund in pursuance of section 114, any sum transferred to that and in pursuance of the proviso to section 118, shall be taken into account.