Section 46
Renewal and insurance funds
of Local Authorities Ordinance, 1996
State OrdinanceIn forceProvision 47 of 182
Section 46
A local authority may from time to time provide for the annual setting aside of amounts to create—
(a)
adequate renewal funds to provide for the entire or partial replacement of assets of the local authority which, owing to depreciation or other cause, need to be replaced at some future date; and
(b)
insurance funds to cover risks or to provide for contingencies, the liability for which would otherwise have to be met by the local authority as and when such risks or contingencies fall due.