[1[(1) The municipal fund shall be kept in the Government treasury or sub-treasury or in the State Bank of India or, with the previous sanction of the State Government in the U. P. Co-operative Bank or in a Scheduled Bank. ]
(2) In places where there is no such treasury or sub-treasury or bank, the municipal fund may be kept with a banker, or person acting as a banker, who has given such security for the safe custody and repayment on demand of the fund so kept as the 2[State Government] may in each case think sufficient ;
(3) Provided that nothing in the foregoing provisions of this section shall be deemed to preclude a board from, with the previous sanction of the 2[State Government] investing in any of the securities described in section 20 of the Indian Trust Act, 1882] or placing on fixed deposit with a Presidency Bank any portion of its municipal fund which is not required for immediate expenditure.
Footnotes in the official text
- 1.Subs. by sec. 53 of U. P. Act no. 27 of 1964.
- 2.Subs. by A. O. 1950 for (Provl. Govt.), which had been Subs. by the A. O. 1937 for (L.G.).