# The Local Authorities (Companies) (Amendment) Order 1996, 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; 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.”.

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Source: https://www.legislation.gov.uk/uksi/1996/621/article/4 (the official version)
Page: https://openlegislation.uk/local-authorities-companies-amendment-order-1996/article-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.