section 180
Maintenance and investment of sinking funds
The Madurai City Municipal Corporation Act, 1971Infrastructure1971468 of 491 sections available15 chapters
Chapter VI FINANCE
Statutory text
- (1) The corporation shall maintain sinking funds for the repayment of money borrowed on debentures issued and shall pay by quarterly instalments into such sinking funds such sum as will be sufficient for the repayment within the period fixed for the loan of all moneys borrowed on debentures issued.
- (2) All money paid into the sinking funds shall, as soon as possible, be invested by the commissioner in—
- (a) securities of the Government or the Central Government, or
- (b) securities guaranteed by the Government or the Central Government,
- (c) any municipal debenture of Tamil Nadu, and shall be invested in the joint names of the Secretary to the Government of Tamil Nadu, Finance Department and the Examiner of Local Fund Accounts, Tamil Nadu to be held by them as trustees for the purpose of repaying at due date the debentures issued by the corporation. Every such investment shall be reported by the commissioner to the council within fifteen days.
- (3) All dividends and other sums received in respect of any such investment shall, as soon as possible after receipt, be paid into the sinking funds and invested in the manner laid down in sub-section (2).
- (4) When any part of a sinking fund is invested in Tamil Nadu municipal debentures, or is applied in paying off any part of a loan before the period fixed for repayment, the interest which would otherwise have been payable on such debentures or on such part of the loan shall be paid into the sinking fund and invested in the manner laid down in sub-section (2).
- (5) Any investment made under this section may, subject to the provisions of sub-section (2), be varied or transposed.
Study data processing for this section.
Some statutory text is still being prepared for this language version.
PDF: pending for this language.