Investment and application of sinking fund

(1) The acc~un:ll stjcns in the siuking f ulld rnvestmtnt and appli- of sinkine fund. shall, subject to ti;e prior approval of Government, be invested in ;h-omissory n:~tes and other ~ec~rities of the Centt,al or thc State covl=i.nment or otherwise- and shall he hcld in trcst for the purpose of this Act by t!ir,ro trustces 011s beiilg the Board and the other a person appointed by Government. (2) Tllc Board may apply the whoIe or any pal-t cl'sums accumulated in tile si~lktrig fund in or towards the disch:.~;.gc of the !honeys for the repayment of which the fund hns bee11 established pravided that i t pays into t-hc fund ill each yz3: and accumulates until the whole oT the irLOIIcyS borro11:zd are discharged, a sum equirralent to t h e ii~te:.est which would have been praducsd by the ai~~kiilg fund, or the part of the sinking fund so applied.