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Sinking Fund may be applied in repayment of borrowed monies.
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17.—The Commissioners may at any time apply the whole or part of any sinking fund set apart by them in or towards the repayment of the borrowed monies for the repayment of which such sinking fund was set apart in such order and manner as they may deem proper: Provided that in case part of the sinking fund shall be applied in repayment as aforesaid the Commissioners shall pay into such sinking fund in each year afterwards and accumulate as hereinbefore prescribed until the whole of the borrowed monies to which such sinking fund is applicable are discharged a sum equal to the interest produced by the sinking fund or part thereof so applied: Provided also that whenever and so long as the yearly income arising from the sinking fund shall be equal to the annual interest of such borrowed monies then outstanding the Commissioners may in lieu of investing the said yearly income apply the same in payment of such interest and may during such period discontinue the payment to such sinking, fund of the yearly sums required to be so paid thereto. Any mortgages bonds or stock granted or issued by the Commissioners and in or upon which they shall invest any sinking fund shall upon such investment be ipso facto cancelled.
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