Paragraph 6
Subject to sub-paragraphs (2) and (3) below, for any financial year the Authority’s minimum revenue provision shall be the aggregate of—
an amount in respect of principal which, except in so far as regulations applied by paragraph 1(2) above otherwise provide, shall be the prescribed percentage of the Authority’s adjusted credit ceiling on the last day of the immediately preceding year; and
an amount in respect of notional interest on each credit arrangement entered into by the Authority which came into being before the beginning of that year, other than an arrangement excluded by regulations applied by virtue of paragraph 1(2) above.
If the Authority’s credit ceiling on the last day of a financial year is nil or negative amount, the Authority’s minimum revenue provision for the immediately following financial year shall be nil.
In the case of a credit arrangement falling within article G11 of this Order (initial and subsequent cost of credit arrangements), the Secretary of State may provide that the amount referred to in sub-paragraph (1)(b) above is nil.