Regulation 3 Credit ceiling increased by use of amount set aside to pay premium

Insert the following regulation after regulation 118—

“Credit ceiling increased by use of amount set aside to pay premium

118A

(1)

In this regulation “premium” means any amount payable to a lender by a borrower as a result of the repayment of a loan in advance of maturity other than an amount in respect of principal or interest.

(2)

If an amount set aside is applied by a local authority, under section 64(1)(a), to pay any premium, the local authority’s credit ceiling shall at the time that premium is paid be increased by an amount equal to the amount so applied.”.