(1) All Sinking Funds established under this Act shall be subject to annual examination by the auditor appointed under section 117, 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 139 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 133.
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(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, except in the case of the debentures issued by the municipality which shall always be valued at par with their face value:
Provided the municipality shall make good immediately any loss owing to the sale of such debentures for repayment of the loan raised under sub-section (1) of section 133.
(4) The municipality shall forthwith pay into a Sinking Fund such amount as the auditor appointed under section 117 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 appointed under section 117 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 sub-section (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.
145. Power of Municipality to borrow money from State Government and attachment of Municipal Fund for recovery of such money:
(1) The municipality may borrow money from the State Government for carrying out the purposes of this Act on such terms and conditions as the State Government may determine.
(2) If any money borrowed by the municipality from the State Government before the commencement of this Act or under sub section (1) is not repaid, or any interest due in respect thereof is not paid according to the terms and conditions of such borrowing, the State Government may attach the Municipal Fund or any portion thereof.
(3) After such attachment, an officer as may be appointed in this behalf by the State Government shall deal with the Municipal Fund, or any portion thereof, so attached, in such manner as he thinks fit and may do all acts in >kj[k.M xtV ¼vlk/kkj.k½] o`gLifrokj 9 Qjojh] 2012 485 respect thereof which any municipal authority or an officer or other employee of the municipality might have done under this Act, if such attachment had not taken place, and may apply such Municipal Fund or a portion thereof, as the case may be, for payment of the arrear of the principal amount and the interest due in respect of such borrowing and of all expenses incurred on account of the attachment and subsequent proceedings:
Provided that no such attachment shall defeat or prejudice any debt for the recovery of which the Municipal Fund was previously charged under any law for the time being in force, and all such prior debt shall be paid out of the Municipal Fund before any part thereof is applied for repayment of the money borrowed from the State Government.