# The Public Airport Companies (Capital Finance)(Second Amendment) Order 1992, Note: Explanatory note


(This note is not part of the Order)
This Order amends the Public Airport Companies (Capital Finance) Order 1990.
The principal changes are—
(1) Where a company or subsidiary obtains a premium on the issue of shares or stock that premium is treated as a liability owed to the share or stock holder for the purposes of article 2 of the principal Order (article 2(2)).
(2) For the purpose of calculating the difference as between one financial year and another of the relevant liabilities of a public airport company or its subsidiary (which determines the credit cover required by the local authority that is the controlling authority) current liabilities which that local authority determine not to set against the current assets of the company or subsidiary are included in the calculation as if they were not current liabilities. Also for that purpose current liabilities appearing as such in the balance sheet of the company or subsidiary which in the preceding financial year were not current liabilities are included in the calculation as if they were not current liabilities (article 2(3)).
(3) In those cases where certain short term borrowing made before 31st March 1991 is repaid with monies from long term borrowing made in the current financial year any consequential increase in relevant liabilities of the public airport company or its subsidiary as compared with the previous financial year will cease to that extent to require its controlling authority to secure the availability of credit cover (article 2(5)).
(4) Article 5 which made provision for additional credit allowance consequent upon changes in the capital structure of a public airport company or subsidiary is deleted (article 2(6)).
(5) Liverpool Airport plc is deleted from the Schedule (article 2(7)).

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Source: https://www.legislation.gov.uk/uksi/1992/196/note (the official version)
Page: https://openlegislation.uk/public-airport-companies-capital-financesecond-amendment-order-1992/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.