Regulation 4 Credit ceiling reduced by payment by the Secretary of State to the Public Works Loan Commissioners

Insert the following regulation after regulation 119—

“Credit ceiling reduced by payment by the Secretary of State to the Public Works Loan Commissioners

119A

(1)

In this regulation “qualifying disposal” has the same meaning as in section 135 of the Leasehold Reform, Housing and Urban Development Act 1993^f1.

(2)

Where, following a qualifying disposal of one or more dwelling houses by a local authority, the Secretary of State makes a payment, other than a payment under section 157, to the Public Works Loan Commissioners so as to reduce or extinguish such debt of that authority to those Commissioners as he thinks fit, that authority’s credit ceiling shall at that time be reduced by an amount equal to the reduction in the debt, or as the case may be, to the amount of the extinguished debt (and, by virtue of this regulation, the credit ceiling may, accordingly, be a negative amount).”.