Paragraph 4

The schedule of instalments shall be determined so as to require each instalment to represent the amount of the billing authority’s undischarged liability to a principal authority, divided by the number of instalments remaining to be paid or transferred immediately before the payment or transfer of the instalment in question.

The amount of the billing authority’s undischarged liability to a principal authority is the amount of its liability to that authority for the financial year in which the instalment falls to be paid or transferred, less the amount, if any, by which that liability is treated as discharged under regulation 3.