Article 58 General borrowing powers

(1)

Subject to paragraphs (2) and (3), the Authority may borrow monies upon the security of their assets for the time being or of their revenues or both their assets and their revenues, by any methods they see fit.

(2)

The Authority’s borrowing shall not exceed one million pounds (or that sum as adjusted in accordance with article 60) without the consent of the Secretary of State.

(3)

For the purpose of paragraph (2), in calculating the amount of monies borrowed by the Authority and outstanding at any one time there shall be excluded any monies which were borrowed for the repayment, within twelve months of the date of their borrowing, of any sum for the time being outstanding by way of principal on any amount previously borrowed.

(4)

Monies borrowed by the Authority under this article shall be applied only to purposes to which capital money is properly applicable.

(5)

For the purposes of paragraph (4), but without prejudice to its generality, purposes to which capital money is properly applicable shall be deemed to include—

(a)

the payment of any interest falling due within the five years immediately following the date of the borrowing of any sum of money borrowed by the Authority under this article; and

(b)

the repayment within twelve months of the date of borrowing of any sum for the time being outstanding by way of principal on any amount previously borrowed.