- (1) Surplus moneys
standing at the credit of any of the heads of accounts of the
Municipal Fund which are not required, either immediately or at
any early date, to be applied for the purposes of this Act by the
Municipality may, in accordance with the rules made by the State
Government, be transferred by the Municipality, either in whole or
in part, to any other head of account of the Municipal Fund:
Provided that such surplus money standing at the credit of
the Commercial Projects Account of the Municipal Fund shall not
be transferred to the General Account of the Municipal Fund.
(2) Surplus moneys which are not transferred under subsection (1) may be invested in public securities or small savings
schemes, approved by the State Government, or deposited at
interest with such scheduled bank as may be determined by the
Municipality.
(3) Profit or loss, if any, arising from the investment as
aforesaid shall be credited or debited, as the case may be, to the
account to which such profit or loss relates.
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