Article 8 Repayment of principal

(1)

Subject to article 11 (early repayment), a relevant authority shall discharge its liability to the designated council in respect of its deemed borrowing by making repayments of principal to that council over a repayment period of 38 years commencing with the financial year beginning 1st April 1988.

(2)

The amount of principal which is to be repaid by a relevant authority in each financial year of the repayment period is 1/38th of the amount of its deemed borrowing.

(3)

The designated council shall pay into the fund—

(a)

all repayments of principal which it has received under paragraph (1);

(b)

amounts equal to the repayments of principal which it would be required to make if it were a relevant authority and its transferred debt were its deemed borrowing; and

(c)

any grant received from the Exchequer by virtue of article 4.