Explanatory note

This Order amends the London Government Reorganisation (Transfer of Loans) Order 1988 (S.I. 1988/233;“the principal Order”) by substituting a new article 4 (application of general provisions relating to borrowing).

The effect of the new article 4(1), (2) and (3) is to apply paragraphs 7, 8 and 11 of Schedule 13 to the Local Government Act 1972 (accounting requirements, power to borrow during the fixed period for repaying loans, and security for loans), with appropriate modifications, to the amount of the liability transferred to the councils listed in Schedule 1 to the principal Order. The new article 4(4) renders paragraphs 12 and 13 of Schedule 13 (joint borrowing and loans between authorities) inapplicable where the borrowing or lending is for a purpose for which the councils are empowered to borrow by virtue of the principal Order.