(1) According to this regulation, the amount deposited in the fund shall be deposited in the bank designated by the committee.
(2) The operation of the account opened in accordance with sub-rule (1) shall be through the joint signature of any officer and member-secretary designated by the committee. 
(3) Out of the amount accumulated in the fund, the amount specified by the committee can be saved and kept as a reserve fund. The committee may decide to spend such amount for the purpose of the following activities and the amount spent in that way should be deposited in the reserve fund as soon as possible.
(a) On the basis of cost participation of the municipality, in infrastructure development and long-term income generation activities,
(b) In case of acts of God or other contingencies,
(c) In the act of paying the amount owed by the municipality to the Government of Nepal or other bodies.  Amended by First Amendment.