New South Wales Consolidated Acts

LOCAL GOVERNMENT AND OTHER AUTHORITIES (SUPERANNUATION) ACT 1927 - SECT 13A

13A Provident Fund investment reserve

(1) The board may transfer such amount as it may deem necessary from the interest earned in any year on investments of the Provident Fund moneys and any discounts received in such year in connection with the purchase of or profit made on the sale of any security or premium paid or allowed in connection with the conversion of any security to Australian Consolidated securities, to a reserve account for the purpose of providing for the adjustment of the difference (if any) between the cost price and selling price on realisation of any investment of the Provident Fund moneys made by the board pursuant to this Act.

(2) Interest derived from the investment of the reserve account shall form part thereof.

(3) The board may at its discretion at any time:

(a) utilise such reserve or any part thereof for the purpose for which the reserve account was established,

(b) allocate out of any surplus moneys in such reserve account which it may consider to be in excess of its requirements for the purpose aforesaid such amount as it deems to be expedient to the credit of the interest earnings of the fund in respect of any year. Such amount when so transferred shall be deemed to be interest on the investments earned during such year,

(c) transfer out of the account to the Management Account such amounts as the board thinks fit towards the management expenses of the board, and

(d) allocate out of such account such amount as it may deem desirable and transfer such amount to the Contingent Account.

(4) The board may borrow to the extent of the moneys of the Provident Fund invested in securities for the purpose of providing cash with which to meet claims on the Provident Fund which may require to be met before realisation of such securities and any interest payable on such borrowings shall be paid out of the reserve account provided for by this section.