Section 86. Investment of surplus moneys

- (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.