Section 7:
Reserve funds.
The University shall invest and keep invested in securities in which trust
funds may be invested in accordance with the law for the time being in force relating to trusts in
1[India] a sum of thirty lakhs of rupees as a permanent endowment to meet the recurring charges of
the University other than charges in respect of fellowships, scholarships, prizes and rewards:
Provided that--
(1) any Government securities as defined in the Indian Securities Act, 1920 (10 of 1920), which
may be held by the University shall, for the purposes of this section, be reckoned at their face value;
and
(2) the aforesaid sum of thirty lakhs shall be reduced by such sums as, at the commencement of
this Act, the 2[Central Government] shall, by order in writing, declareto be the total capitalised value,
for the purpose of this section --
(a) of all permanent recurring grants of money which have been made either to the
Muhammadan Anglo-Oriental College, Aligarh, the Muslim University Association or the
Muslim University Foundation Committee, by any Ruler of a State in India; and
(b) of the total income accruing from immovable property (not being land or buildings, in the
occupation and use of the said college) which by the operation of this Act has been transferred to
the University
Notes:
1. Subs. by Act 62 of 1951, s. 4, for "Part A States and Part C States".
2. Subs. by the A.O. 1937, for "G.G. in C.".