Article 3 Power to borrow

For section 46 of the 1897 Act (Power to borrow) there shall be substituted the following section—

“Power to borrow

46

(1)

Subject to the following provisions of this Act, the Commissioners may from time to time borrow at interest upon the security of all or any of the revenues and property of the Commissioners and by any method they see fit such sums of money as they think necessary.

(2)

The total amount borrowed under this Act and outstanding at any one time shall not exceed £1 million.

(3)

In calculating for the purposes of this section the aggregate amount of money borrowed by the Commissioners and outstanding at any one time there shall be excluded any sums borrowed for use within 12 months of the date of borrowing for repayment of any sum for the time being outstanding by way of principal on any amount previously borrowed.

(4)

All moneys borrowed under this Act shall be applied by the Commissioners only for the purposes to which capital is properly applicable.

(5)

For the purposes of subsection (4) above, but without prejudice to its generality, purposes to which capital money is properly applicable shall be deemed to include—

(a)

the payment of any interest falling due within the five years immediately following the date of borrowing of any sum borrowed under this Act; and

(b)

the repayment within 12 months of the date of borrowing of any sum for the time being outstanding by way of principal on any amount previously borrowed.”.

In consequence of paragraph (1) above section 20 (Power to borrow) of the Cowes Harbour Order 1936^f1 is hereby repealed.