Provided further that all moneys on account of the Municipal Fund of a Municipality may be transferred from one bank to another bank through a resolution passed in this behalf by a Municipality in the prescribed manner.

Application of Municipal Fund: (1) All moneys credited to the Municipal Fund, from time to time shall be applied for payment of all sums, charges and costs necessary for carrying out the purposes of this Act and the rules and regulations made thereunder or for which payment is duly directed, sanctioned or required by or under any of the provisions of this Act.

1. (2) Such moneys shall likewise be applied in payment of all sums, payable out of the Municipal Fund under any other enactment for the time being in force. (3) Notwithstanding anything contained in this Act, such moneys may also be applied in payment of all sums, charges and costs on all acts and things which are likely to promote the safety, health welfare, or convenience of the inhabitants of the municipal area, or the expenditure whereon may be declared by the Municipality, with the sanction of the Government, to be an appropriate charge on the Municipal Fund.
2. (4) No expenditure out of the Municipal Fund shall be incurred by any Municipality beyond the municipal area of such Municipality; Provided that the Municipality may, with the approval of the Government, incur expenditure beyond the Municipal area of the Municipality for the execution of projects or for creation of physical assets outside the limits of such municipal area as well as for the operation and maintenance thereof for carrying out the purposes of this Act.