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Regulation 10 Expenditure on certain investmentsI1

England and Wales Not yet in force

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

In this regulation, “relevant amount” means any amount which—

(a)

is due to a local authority under an investment which is, or was at the time it was made, an approved investment under regulation 2(b) or (c) of the Local Authorities (Capital Finance) (Approved Investments) Regulations 1990f1;

(b)

has become payable by the institution or building society with whom the investment was made (“the relevant body”) before the date on which the authority are entitled under the terms of the investment to require it to be repaid or redeemed; and

(c)

has become payable by reason of a default or breach of covenant on the part of the relevant body in relation to the payment of the principal sum invested or interest.

(2)

Expenditure to which paragraph (3) applies, in so far as, apart from this regulation, it would be expenditure for capital purposes by virtue of section 40(4), shall not be expenditure for capital purposes.

(3)

This paragraph applies to expenditure incurred by a local authority on the making of an investment where—

(a)

a relevant amount has been paid to the authority;

(b)

the authority apply the relevant amount to meet the expenditure; and

(c)

the investment consists of a deposit made with, or any security or other instrument issued by, the institution or building society which has become liable to pay the relevant amount.

Annotations

Commencement

I1

Reg. 10 in force at 1.4.1997, see reg. 1(1)(b)

Footnotes

f1

S.I. 1990/426; amended by S.I. 1991/501 and S.I. 1992/1353.