This Act may be cited as the Dunedin Drainage and Sewerage Board Empowering Act, 1938.

The Dunedin Drainage and Sewerage Board (hereinafter called the Board) may from time to time set aside any moneys to form a fund or funds for the repair, renewal, replacement, or improvement of any property, plant, fixtures, or appliances of the Board, or for the purpose of purchasing additional property, plant, fixtures, or appliances of the class for which the fund or funds is or are so established.

The Board shall in the month of April in each year transfer to a separate bank account the moneys so set aside during the previous financial year.

The Board may invest any moneys in such separate bank account in manner following, that is to say,—

and shall pay the proceeds of such investments into the said fund or funds.

The moneys in such fund or funds may from time to time be applied only to the purposes referred to in the last preceding section, or any of them.

The sum of thirty-seven thousand seven hundred and four pounds one shilling and fourpence standing to the credit of the Renewal Fund in the accounts of the Board for the year ending on the thirty-first day of March, nineteen hundred and thirty-seven, shall be deemed to be portion of the fund hereby authorized, and the action of the Board in setting aside such sum and investing portion thereof is hereby validated. So much of the said sum of thirty-seven thousand seven hundred and four pounds one shilling and fourpence as is not represented by securities for investment shall forthwith on the passing of this Act be transferred to a separate bank account, being the bank account referred to in the last preceding section, and the proceeds from any such securities shall be paid into the said bank account.