(1) All Sinking Funds established under this Act shall be subject to annual
examination by the Auditor who shall ascertain whether the cash
and the value of securities belonging to such Sinking Funds are
equal to the amount which should be at the credit of such Sinking
Funds, had the investment under section 148 been regularly made
and had the interest accruing from such investments been regularly
obtained.
(2) The amount which should be at the credit of a Sinking
Fund shall be calculated on the basis of the sums paid into such
Sinking Fund under section 145.
(3) The value of securities belonging to a Sinking Fund
shall be the current value of such securities, unless such securities
become due for redemption at par with, or above, their face value
before maturity in which case their current value shall be taken as
their redemption value.
(4) The Municipality shall forthwith pay into a Sinking
Fund such amount as the Auditor may certify to be deficit in
respect of such Sinking Fund, unless the State Government
specially sanctions a gradual readjustment of such deficit.
(5) If the cash and the value of the securities at the credit of
a Sinking Fund are in excess of the amount which should be at the
credit of such Sinking Fund, the Auditor shall certify the amount of
such excess sum, and the Municipality shall, thereupon, transfer
the excess sum to the Municipal Fund in the General Account.
(6) If any dispute arises as to the accuracy of any deficit or
excess referred to in the certificate under sub-section (4) or subsection (5), the Municipality may, after payment of such deficit or
after transfer of such excess, as the case may be, refer the matter to
the State Government whose decision thereon shall be final
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