“(1) The Board may from time to time by resolution set aside a reserve for any one or more of the purposes set out in subsection (2) of this section—
“(2) The reserve may be set aside or so estimated for any one or more of the following purposes:
“(c) Any repair, renewal, replacement, depreciation, or obsolescence of any of its property, fixtures, structures, plant, vehicles, or appliances:
“(d) For improvements or additions to any of its property, fixtures, structures, plant, vehicles, or appliances:
“(e) For the purpose of purchasing additional property, fixtures, structures, plant, vehicles, or appliances to form part of or be used in connection with any such undertaking, service, or activity:
“(f) For the re-erection, repair, or reinstatement of any buildings or other property (either real or personal) of the Board that may be destroyed or damaged by fire, earthquake, tempest, or other inevitable accident:
Provided that where the Board considers it inexpedient that any building or other property that is destroyed or damaged by fire, earthquake, tempest, or other inevitable accident as aforesaid should be re-erected, repaired, or reinstated, the Board may apply any money forming part of any such fund, not exceeding the insurable value of the building or other property destroyed or damaged, in the acquisition or erection of another building or the purchase of other property (either real or personal) in place of the building or other property destroyed or damaged:
“(g) To meet claims or demands arising from or out of or in connection with or in relation to damage to any property arising out of the exercise and performance by the Board of its powers, duties, and functions under this or any other Act; but no greater sum shall be set aside in any 1 year than the amount that at current rates would have been payable for the year in respect of insurance of any property belonging to the Board and in respect of insurance against such damage:
“(i) To meet any other anticipated losses or expenditure of, or in connection with, any such undertaking, service or activity.
“(3) Where the Board, pursuant to subsection (1) of this section, has made provision in any financial year for the setting aside of, or has set aside, any money for any of the purposes referred to in that subsection, the Board shall transfer such money out of the appropriate separate account kept in accordance with section 46(1)(a) of this Act and credit the same to a special account or accounts, but so always that—
“(a) Any money provided or set aside to form a fund or funds for any of the purposes provided in paragraphs (c), (d), (e), (h), and (i) of subsection (2) of this section shall each be credited to and held separately in a special account, and shall be applied only for the purpose for which it was provided or set aside:
“(4) Where the Board, in any financial year, credits any money to, or holds any money in, a special account established pursuant to subsection (2) of this section, it shall, not later than 6 months after the close of that financial year, pay that money into a separate bank account or accounts, and, subject to subsection (5) of this section, may invest the whole or any part of it either in the capital works of the undertaking, service, or activity in respect of which the special account was established or in the following manner:
“(e) In the debentures or stock of any local authority within the meaning of the Local Authorities Loans Act 1956 which are authorised investments for the investment of trust funds under the provisions of section 4 of the Trustee Act 1956:
Provided that the Board shall not be entitled under this paragraph to so invest any money provided or set aside to form a fund for any of the purposes provided in paragraphs (f), (g), or (h) of subsection (2) of this section, if at the time of the investment the total amount of the securities of such local authorities held pursuant to this paragraph or to paragraph (f) of this subsection as investments of that fund, together with the money then proposed to be invested, exceeds half the total investments for the time being of the money in that fund:
“(5) Nothing in subsection (4) of this section shall authorise the Board to invest any money provided or set aside to form a fund or funds for any of the purposes provided in paragraphs (f), (g), or (h) of subsection (2) of this section in the capital works of any undertaking, service, or activity of the Board.
“(6) Any income arising out of any investments made pursuant to subsection (4) of this section shall be credited to the special account out of which such money was invested.
“(7) Notwithstanding anything in subsection (2) of this section, the Board may from time to time, if it considers the amount of any money held in any special account or accounts relating to any such fund to be in excess of the amount required to be held therein, by resolution either transfer the whole or any part of such money back into the account from which it was originally transferred or transfer it to the special account or accounts relating to some other fund or funds created under this section:
“Provided that no money shall be transferred under this subsection to the special account relating to any other fund unless the money already constituting such other fund was capable of being transferred originally from the same separate account, kept pursuant to section 46(1) of this Act, as the money being transferred under this section was originally taken.”