# The Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016, Regulation 5: Borrowing by way of a credit arrangement


(1) A local authority may incur debt through borrowing by way of a credit arrangement for financing capital expenditure of the authority.
(2) The amount of external debt to be recognised by a local authority in respect of a credit arrangement is the liability that requires to be recognised as arising from the credit arrangement in accordance with proper accounting practices.

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Source: https://www.legislation.gov.uk/sdsi/2016/9780111031063/regulation/5 (the official version)
Page: https://openlegislation.uk/draft-local-authority-capital-finance-and-accounting-scotland-regulations-2016/regulation-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.