Article 8 Transfer of property, rights and liabilities relating to Loan Stock
On the transfer date all rights and liabilities of the Residuary Body in respect of–
London County 6.75 per cent stock 1988/90;
Greater London 6.75 per cent stock 1990/92;
3 per cent London County Consolidated stock; and
2.5 per cent London County Consolidated stock
shall vest in the London Pensions Fund Authority (“the LPFA”).
Immediately before the transfer date the Residuary Body shall set aside from its revenue balances the sum of £96,319,202.17; and
on the transfer date the Residuary Body shall transfer that sum to the LPFA.
On the transfer date all rights and liabilities of the Residuary Body in respect of loan stocks issued by the abolished council or by the former London County Council which have been redeemed shall vest in the LPFA.
On the transfer date the Residuary Body shall pay the LPFA an amount equal to any unclaimed sums outstanding in respect of loan stock (whether or not redeemed) less any amount held by the Chief Registrar of the Bank of England in respect of such unclaimed sums.
The sum transferred by paragraph (2)(b)–
shall be applied by the LPFA to meet the liabilities vested in them by paragraph (1) as and when required; and
until so required shall be invested by the LPFA in approved investments as defined by section 66(1)(a) of the 1989 Act.
The net interest received by the LPFA from the sum transferred to them by paragraph (2)(b) shall be applied for defraying expenditure (if any) incurred in respect of the functions, property, rights and liabilities transferred to the LPFA by article 3 of the London Government Reorganisation (Pensions etc) Order 1989, or otherwise as the Secretary of State may direct.
“Net interest” in paragraph (6) above means the interest earned from the investment of the sum transferred by paragraph (2)(b) less any interest payable in respect of the stock referred to in paragraph (1) and any expenses incurred by the LPFA in the management of that stock.
The Local Authority (Stocks and Bonds) Regulations 1974f1 are amended–
in regulation 1(3), in the definition of “local authority”, by substituting for the words “a residuary body established by Part VII of that Act” the words “London Pensions Fund Authority”; and
in Schedule 2, by substituting for the words “London Residuary Body” the words “London Pensions Fund Authority”.
For the purposes of section 47 of the 1989 Act (security for money borrowed etc) the stock referred to in paragraph (1) shall be treated as money borrowed by the LPFA.
The stock referred to in paragraph (1) shall be excluded from any determination made by the LPFA under section 45(1) of the 1989 Act (the authority’s own limits).