Any local authority, in any case where it deems it advisable that any sum of money at credit of any account should be placed on deposit at interest, may, instead of placing that money on deposit, pay that money to the National Provident Fund under an agreement that the Board will repay that money to the local authority as provided in the agreement (either in one sum or by instalments), and that the Board will pay to the local authority interest, at a rate to be specified in the agreement, on that money in respect of the period from the date of its payment to the Fund to the date of its repayment to the local authority.”

Notwithstanding anything to the contrary in any other Act or rule of law, it shall be lawful for Sinking Fund Commissioners or Depreciation Fund Commissioners of any local authority to pay to the National Provident Fund any money received by them as such Commissioners under an agreement that the Board will repay that money to the Commissioners as provided in the agreement (either in one sum or by instalments), and that the Board will pay to the Commissioners interest, at a rate to be specified in the agreement, on that money in respect of the period between the date of its payment to the Fund to the date of its repayment to the Commissioners.

The payment of any money to the Fund under this section shall, for the purposes of any enactment authorising or directing the investment of the money, be deemed to be an investment authorised or directed by that enactment.”