Article 4 Application of Part IV: requirement for credit cover

In article 14, for paragraph (3) substitute the following paragraph—

“(3)

This paragraph applies to a local authority whose credit ceiling, as determined under Part III of Schedule 3 to the Act, is nil or a negative amount at the beginning of the current year, and who have no money outstanding by way of borrowing other than—

(a)

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

(b)

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

(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 relevant lender.”.