Article 54 Reserve fund

(1)

If in respect of any financial year the moneys received by the Comhairle on account of the revenue of the harbour undertaking exceed the moneys expended or applied by it in respect thereof, the Comhairle may in respect of that year carry to the credit of a reserve fund in respect of the harbour undertaking such a sum as it considers reasonable not exceeding the amount of such excess.

(2)

Moneys for the time being standing to the credit of the reserve fund may be invested in any securities in which trustees are for the time being authorised to invest trust moneys including debenture stock or other security created by the Comhairle.

(3)

Any reserve fund provided under this article may be applied–

(a)

in making good to the regional rate fund any deficiency at any time arising in the income of the Comhairle from the harbour undertaking;

(b)

in meeting any extraordinary claim or demand at any time arising against the Comhairle in respect of the harbour undertaking;

(c)

in defraying any expenditure in connection with the harbour undertaking for which capital is properly applicable or in providing money for repayment of loans;

(d)

in defraying expenditure to be incurred from time to time in repairing, maintaining, replacing and renewing buildings, works, plant, vessels, equipment or articles forming part of the harbour undertaking; or

(e)

for any purpose which in the opinion of the Comhairle is desirable in the interests of securing the improvement, maintenance or management of a harbour area in an efficient and economical manner or of facilitating the efficient and economic transport of goods or passengers by sea to or from a harbour area.