Part 7Finance

38Scottish Ministers' power to pay off loans made to local authorities

(1)The Scottish Ministers may make to the Public Works Loan Commissioners or to any other person payment reducing or extinguishing a local authority’s liability to the Commissioners or, as the case may be, that other person in respect of a loan made by the Commissioners or that other person to the authority for the purposes of capital expenditure.

(2)If the Scottish Ministers make a payment in pursuance of subsection (1) above they shall—

(a)prepare a report on their reasons for making that payment; and

(b)lay that report before the Scottish Parliament.