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.MINICIPAL I.AW. 71
account and may l)e applietl towanls tlio next year's interest, but il' it more
than pays the interest then tlie excess must be carried to tl>e sinking fund
account or paid on the principal of sucli debt.
JWIl. Sinking Fund Money nnist not be used in any case for cur-
rent expenditure, unless so authorized by the Municipal or some other Act.
Ii'i4 Councillors' Personal Liability. In caso a ("ouneil diverts any
of said moneys the members wlio vnfe for such diversion are personally
liable for said amount, which may be recovered in any coiu't of competent
juri.sdiction. Such members are also di.s((ualiHed from holdinir any
iiiunicii)al oflice for two years.
It the Council, upon the reipiest of any ratepayer, nei^leets for one
niontli thereafter to bring .such action in the name of the nnniicipality, the
action may be iirought by an^y ratei)ayer on l)ehalf of himself and all the
other ratepayers of the nnniicipality.
;K5. Treasurer's Annua! Statement. The Treasurer is recjuired to
lay before the Council eveiy year before th<' striking of the annual rate, a
statement showing the amount to be lai.sed towards a sinking fund.
Kailure to do so reinlers him liable to a peiuilty of .iiS25, to be recovered at
the instatiee of any resident I'atcpayer.
IWH. Neglect to Provide Sinking Fund. If the Council neglects
in any year to levy the amount re(|uired to provide a sinking fund for the
payment of the debenture del)t of tht» nninicipality, every member of the
('ouneil is distpialitied from holding any mvuiieipal oflice for two years.
Any member may free himself from this penalty l)y showing to the satis-
faction of the judge or coiu't that he madi' leasonable efforts to procure the
levying <jf the required rate.
It'il. Redemption of Debentures. The Lieiitenant-Covernor in m
Council may direct that a portion of the special rate levied and at the
crcflit of the sinking fund account, instead of being inve.sted, shall be
applied to the payment of the ilebt or debentures though not then payable,
and at .such value as the Council can agree upon. The Council shall apply
fi!nl continue to ap])ly such part of the produce of the special rate as
directed by such Oi'dcr in Council.
li'iH. Investment of Surplus. If the moneys at the credit of the
sinking finid, or special rate account, cannot be immediately applied to-
wards payment of such debt, the Ccmncil is re(piired to invest it in (jlovern^
ment securities, municipal delu'iitures, or in first mortgage on real estate,
farm property, or in such other debentures as the Lieiitenant-Covernor in
(>)uncil may approve. A mortgage on real estate must not exceed two-
thirds in value according to the last revised Assessment Roll (.see Section
420, Municipal Act).
ll'i9. Purchasing Unsold Debentures. The Council may use the
sinking fund in purchasing ini.sold <lebentures, and hold .such debentures as
an investment on account of the sinking fund.