Regulation 4

After regulation 2 there shall be inserted the following regulation—

“2A

(1)

The conditions referred to in the definition of “prescribed expenditure” in regulation 2 above are that—

(a)

on 1st April 1996 the education authority had a credit ceiling, as determined under Part III of Schedule 3 to the 1989 Act which was nil or a negative amount; and

(b)

on 1st January 1997 the education authority have no money outstanding by way of borrowing other than—

(i)

short-term borrowing (within the meaning of section 45(6) of the 1989 Act); or

(ii)

borrowing undertaken before 24th August 1995, other than borrowing by the issue of stock on or after 15th December 1993, from a person who is not a relevant lender.

(2)

In this regulation

(2)

In this regulation

(a)

“the 1989 Act” means the Local Government and Housing Act 1989^f1; and

(b)

“relevant lender” has the same meaning as in the Local Authorities (Capital Finance) (Approved Investments) Regulations 1990^f2.”