# The Police Act 1997 (Provisions in relation to the NCIS Service Authority) Order 1998, Paragraph 3


(1) If the Authority sets aside an amount as provision to meet credit liabilities (whether or not pursuant to a requirement to do so) then, subject to sub-paragraph (2) below, the Authority’s credit ceiling shall at that time be reduced by an amount equal to the amount so set aside (and, by virtue of this paragraph, that ceiling may, accordingly, be a negative amount).
(2) This paragraph does not apply with respect to—
(a) an amount which, in relation to a credit arrangement, other than one excluded by virtue of the application of paragraph 2(2) above, is applied or charged (as an amount of credit cover) as mentioned in paragraph (b) or paragraph (c) of article G12(3) of this Order (limits on powers to enter into credit arrangements); or
(b) so much of an amount set aside under article G24 of this order (duty to set certain amounts aside as provision to meet credit liabilities) as provision to meet credit liabilities as (in accordance with Part II of this Schedule) is referable to notional interest on credit arrangements.
(3) For the purpose of this paragraph, an amount set aside under article G24(1) of this Order (duty to set certain amounts aside as provision to meet credit liabilities) in respect of any financial year shall be treated as set aside on the last day of that year.

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Source: https://www.legislation.gov.uk/uksi/1998/633/schedule/3/paragraph/3 (the official version)
Page: https://openlegislation.uk/police-act-1997-provisions-in-relation-to-the-ncis-service-authority-order-1998/schedule-3/paragraph-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.