Provisions of loans raised by the Municipality of the City

Provisions of loans raised by the Municipality of the City.-

In the case of all loans raised by the municipality before the provisions of this Act are made applicable to a city, the following provisions shall apply:-

1. (i) if, when the loans were raised they were made repayable from sinking funds, the Corporation shall establish sinking funds for the repayment of the loans and shall pay into the funds such sums, on such dates as may have been fixed when the loans were raised;
2. (ii) all securities and cash held by the Municipality in sinking fund, if any, established for the repayment of such loans, shall be transferred to the Corporation and shall be held by it as part of the sinking funds established under clause (i);
3. (iii) the provisions of section 114 shall apply to such sinking funds;
4. (iv) if, when any such loans were raised, the loans were made repayable by equal payments of principal or by annual drawings, the Corporation shall make such payments or annual drawings on such dates and in such manner as may have been fixed when the loans were raised;
5. (v) the provisions of section 121 shall apply to such loans.