300 Cancellation of part of loan in respect of which sinking fund is held

If a local authority has, before the commencement of this section, established
a sinking fund to provide for the repayment of any loan, and if, after the
commencement of this section, it repurchases and cancels or redeems or
otherwise repays in part any loan in respect of which the sinking fund
is held before its stated maturity, the local authority may, with the consent
in writing of the Auditor-General, require the release to the local authority
of such amount of the sinking fund as will leave it (with probable
accumulations of interest) sufficient to repay the balance of the loan at
maturity.

Compare: 1974 No 66 s 122ZR(1)