OpenLegislation

Regulation 65 Capital receipts of debt-free authoritiesI1

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—

  • “disregarded borrowing” means—

    1. (a)

      borrowing which is short-term borrowing for the purposes of section 45(1)(b) (the authority’s own borrowing limits);

    2. (b)

      borrowing undertaken under section 5 of the City of London (Various Powers) Act 1924f1; or

    3. (c)

      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 relevent lender; and

  • “relevant lender” means—

    1. (a)

      the Public Works Loan Board;

    2. (b)

      the Bank of England;

    3. (c)

      the European Investment Bank;

    4. (d)

      a body mentioned in any of paragraphs 1 to 17, or in paragraph 28, 29 or 30, of Part II of the Schedule to the Local Authorities (Capital Finance) (Approved Investments) Regulations 1990;

    5. (e)

      an authorised institution (within the meaning which that expression has in the Banking Act 1987 f2; or

    6. (f)

      a building society (within the meaning given to that expression in the Building Societies Act 1986 f3).

(2)

The reserved part of a capital receipt shall be nil per cent. where—

(a)

at the beginning of the financial year in which the receipt is received, the credit ceiling of the authority, as determined under Part III of Schedule 3 to the Act, was nil or a negative amount;

(b)

at the time the receipt is received, the authority have no money outstanding by way of borrowing other than disregarded borrowing;

(c)

the reserved part does not fall to be determined under regulation 67, 68, 69 or 70; and

(d)

if the receipt was derived from the disposal of an interest in a dwelling held for the purposes of Part II of the Housing Act 1985 (provision of housing accommodation)f4, the disposal was made by virtue of Part V of that Act (the right to buy).

Annotations

Commencement

I1

Reg. 65 in force at 1.4.1997, see reg. 1(1)(b)

Footnotes

f1

1924 c. xxxvii. Section 5 was repealed by section 40(1) of the City of London (Various Powers) Act 1960 (c. xxxvi).

f2

1987 c. 22.

f3

1986 c. 53.

f4

1985 c. 68.