Investment of Amount at the Credit of Sinking Fund

(1) All moneys paid into a Sinking Fund shall, as soon as possible, be invested by the Municipality in- (a) Government securities, or (b) securities guaranteed by the Central Government or any State Government, or (c) such other public securities as may be approved by the State Government, and shall be held by the Municipality for the purpose of repaying, from time to time, the loans raised by. (2) All sums received in respect of any investment under sub-section (1) shall, as soon as possible, after their receipt, be paid into the Sinking Fund and shall be invested in the manner laid down in that sub-section. (3) Moneys standing at the credit of two or more Sinking Funds may, at the discretion of the Municipality, be invested together as a common fund, and it shall not be necessary for the Municipality to allocate the securities held in such investments to the several Sinking Funds. (4) Subject to the provisions of sub-section (1), any investment made under this section may, from time to time, be varied or transposed.