The Council may, in any year, after making provision for the charges referred to in section three of this Act, make an appropriation from the revenue of any undertaking referred to in that section to provide a reserve fund in respect of the undertaking.

Where in any year an appropriation has been made as aforesaid the Council shall in the month of April next following pay the amount so appropriated into a separate banking account to be termed the Tramway Reserve Fund Account or, as the case may require, the Electric Light Reserve Fund Account.

The moneys paid into such account shall be applied for extensions and improvements in the under-taking in connection with which the fund is established, and for the reimbursement to the revenue account of the undertaking of any moneys expended out of the revenue account in meeting the cost of extensions and improvements in the undertaking, whether the expenditure of those moneys was incurred before the coming into force of this section or is incurred at any time hereafter.

If at any time the renewal funds created in respect of any undertaking are insufficient to meet renewals, the Council may use any part of the reserve fund established for that undertaking for the purposes of such renewals.

The Council may invest any part of any such reserve fund in the manner following:—

Separate accounts shall be kept by the Council of all moneys paid to or received by them in respect of such reserve funds.

Such accounts shall for the purposes of audit be subject to the provisions of the Municipal Corporations Act, 1933.”