Article G25 Use of amounts set aside to meet credit liabilities
Amounts for the time being set aside by the Authority (whether voluntarily or pursuant to a requirement under this Part) as provision to meet credit liabilities may, subject to paragraph (2) below, be applied only for one or more of the following purposes—
to meet any liability of the Authority in respect of money borrowed by the Authority, other than a liability in respect of interest;
to meet any liability of the Authority in respect of credit arrangements, other than those excluded under paragraph 2(2) of Schedule 3 to this Order; and
where a credit approval has been used as authority not to charge particular expenditure to a revenue account, to meet that expenditure.
Subject to the following provisions of this article if, on the date which is the relevant date for any financial year, the Authority’s credit ceiling as determined under Part I of Schedule 3 is a negative amount, any such amount as is referred to in paragraph (1) above in that financial year may be applied by the Authority for the same purposes as the purposes it may be applied by an authority by virtue of regulations made by the Secretary of State under section 64 of the 1989 Act, so long as any conditions specified in those regulations are complied with.
The aggregate of the amounts which may be applied by the Authority in accordance with paragraph (2) above in any financial year shall not exceed the amount by which the Authority’s credit ceiling on the relevant date is less than nil.
References in paragraphs (2) and (3) above to the relevant date shall be construed as follows—
for the financial year beginning on 1st April 1998, the relevant date is that date; and
for any subsequent financial year, the relevant date is the last day of the preceding financial year.