# The Local Government Changes for England (Payments to Designated Authorities) (Minimum Revenue Provision) Regulations 1995, Regulation 4: Liability of participant authorities to make payments to designated authorities


(1) This paragraph applies where—
(a) in a case where the designated authority is a successor authority in relation to an abolished authority, the designated authority, in the initial year, is or, but for regulation 26(7) of the 1990 Regulations, would be required by virtue of subsection (1) of section 63 of the 1989 Act to set aside from a revenue account as provision to meet credit liabilities an amount which is greater than the amount it would have been required so to set aside by virtue of that subsection if the 1995 Regulations had not been made; or
(b) in a case where the designated authority is the relinquishing authority in relation to a transferred area, that authority, in the initial year, is or, but for that regulation 26(7), would bve required by virtue of that regulation to set aside an amount from a revenue account as provision to meet credit liabilities.
(2) Where paragraph (1) above applies and—
(a) the amount which the designated authority is or would be required to set aside as mentioned in that paragraph includes or, as the case may be, would include one or more amounts determined—
(i) for the purposes of sub-paragraph (b) of paragraph (1) of regulation 26 of the 1990 Regulations in respect of relevant housing or, as the case may be, non-housing advances; or
(ii) for the purposes of sub-paragraph (c) of that paragraph in respect of relevant housing or, as the case may be, non-housing SCAs; or
(b) the modified housing amount or modified non-housing amount, or (as the case may be) the modified relevant amount, is a positive amount;
each participant authority shall, unless the designated authority and all the participant authorities otherwise agree, be liable to make payments to the designated authority, in accordance with these Regulations.
(3) Payments by a participant authority pursuant to paragraph (2) above—
(a) shall be made in respect of such financial years beginning on or after the reorganisation date as that authority and the designated authority may from time to time agree or, in default of such agreement, as the designated authority may determine; and
(b) shall, in respect of each such financial year (“the current year”), consist of a component in respect of principal for that year and a component in respect of interest for that year (“the relevant components”) calculated by the designated authority in accordance with such method of calculation as may from time to time be agreed by the designated authority and all of the particpant authorities or, in default of such agreement, in accordance with the Schedule to these Regulations (“the Schedule”).

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Source: https://www.legislation.gov.uk/uksi/1995/2895/regulation/4 (the official version)
Page: https://openlegislation.uk/local-government-changes-for-england-payments-to-designated-authorities-minimum-revenue-provision-regulations-1995/regulation-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.