non-accumulating sinking fund", and a sinking fund
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formed under paragraph (b) thereof as "an accumulating
sinking fund".
(2) Every aun paid to a sinking fund shall, unless
applied in repayment of the moneys for the repayment of
which the sinking fund is formed, or in such other manner
as may be authorized by any enactment, be invested in
securities in which trustees are for the time being
authorized by law to invest trust money or in such other
securities as the Governor may in writing permit and the
Council may from time to time vary and transpose the
investments.
(3) In the case of an accumulating sinking fund the
interest received in any year from the investment of the
sums set apart for the purpose of the sinking fund shall
form part of the revenue for that year of the Council's
general fund, but the contribution to be made to the sinking
fund out of the general fund shall in that year be increased
by a sum equal to the interest that would have accrued to
the sinking fund during that year if interest had been
accumulated therein at the rate per centum per annum on
which the annual payments to the sinking find are based.
(4) The Council may at any time apply the whole or
any part of the sinking fund in or towards the discharge of
the moneys for the repayment of which the sinking fund was
formed:
Provided that, in the case of an accumulating sinking
fund, the Council shall pay into the fund each year and
accumulate during the residue of the fixed period a sum
equal to the interest which would have been produced by
such sinking fund or part thereof so applied if invested
at the rate per centum per annum on which the annual
payments to the sinking fund are based.
(53)