Coal Industry Act 1965

1 Borrowing by, and loans by Minister to, National Coal Board. E+W+S

[F1 (1) Subject to subsections (3) and (4) of this section, [F2 the British Coal Corporation (hereafter in this Act referred to as “the Corporation”)]may borrow temporarily, by way of overdraft or otherwise, either from the Secretary of State or, with the consent of the Secretary of State, from any other person, such sums in sterling as the Board may require for meeting their obligations and discharging their functions.

(2) Subject to subsection (3) of this section, [F3 Corporation] may borrow (otherwise than by way of temporary loan) from the Secretary of State such sums in sterling as the [F3 Corporation] may require in connection with their functions for all or any of the following purposes, that is to say—

(a) for meeting any expenses properly chargeable to capital, being expenses incurred in connection with the provision or improvement of assets;

(b) for the provision of working capital;

(c) for acquiring an undertaking or part of an undertaking;

(d) for lending money to, or meeting a guarantee given for the benefit of, any person for the purpose of an undertaking carried on by him or, where that person is a body corporate, an undertaking carried on by a subsidiary of that body corporate within the meaning of [F4 section 736 of the Companies Act 1985]

(e) for subscribing for or acquiring shares, stock, debentures, debenture stock, or other securities of a like nature, of a body corporate, otherwise than by way of investment;

(f) to pay off any money borrowed by the [F3 Corporation];

(g) for any purpose for which capital moneys are properly applicable (whether or not specified in the foregoing paragraphs of this subsection).

(2A) The [F3 Corporation] with the consent of the Secretary of State (which shall require the approval of the Treasury) may borrow in a currency other than sterling any sum which they have power to borrow in sterling from the Secretary of State.

(3) Without prejudice to subsection (4) of this section, the aggregate amount outstanding in respect of the principal of—

(a) sums borrowed by the [F3 Corporation] otherwise than from any of their wholly owned subsidiaries (including any sum which under section 1(4) of the M1 Coal Industry Act 1973 is deemed to have been so borrowed), and

(b) sums borrowed by any wholly owned subsidiary of the [F3 Corporation] otherwise than from the [F3 Corporation]or from another such subsidiary,

shall not exceed the limit of [F5 £5,500 million],but the Secretary of State may with the approval of the Treasury by order made by statutory instrument increase that limit up to [F5 £6,000 million]].

(4) The aggregate of the amounts outstanding in respect of sums borrowed temporarily by the [F3 Corporation] under subsection (1) and subsection (2A) of this section—

(a) shall not at any time exceed such limit as the Secretary of State may from time to time direct, [F6 with the approval of the Treasury].

(5) The [F3 Corporation] shall not have power to borrow money except in accordance with this section or with section 2(3) of the M2 Coal Industry Act 1973.

(6) The Secretary of State may lend to the [F3 Corporation] any sums which the [F3 Corporation]have power to borrow under subsection (1) or (2) of this section.

(7) The foregoing provisions of this section (other than subsections (3)and (4) thereof) shall be deemed to have come into force on 28th March1965 and—

(a) the provisions of the Coal Industry Nationalisation Act 1946 M3 (hereafter in this Act referred to as “the Act of 1946”) specified inSchedule 1 to this Act shall have effect subject to the amendmentsrespectfully specified in that Schedule, being amendments designed tocause those provisions to apply to sums lent to the Board by theMinister, or borrowed by the Board, under this section as they appliedto advances by the Minister to the Board, or sums borrowed by theBoard, under that Act;

(b) any advances made to the Board by the Minister under section 26 or 27of the Act of 1946, and any sums borrowed from the Minister by theBoard under the said section 27, being advances made or sums borrowedon or after 28th March 1965, shall be treated as loans made to theBoard by the Minister, or, as the case may be, sums borrowed by theBoard, under this section; and any directions with respect to any suchadvances given under paragraph (b) of section 28(1) of the Act of 1946before the passing of this Act shall be deemed to have been givenunder the said paragraph (b) as amended by the said Schedule 1;

(c) any amounts outstanding at the passing of this Act in respect of sumsborrowed temporarily under the said section 27 from any person otherthan the Minister shall be treated as having been borrowed under subsection(1) of this section; and accordingly any guarantee in respect thereofgiven by the Treasury under subsection (4) of the said section 27shall continue to have effect.

[F7 (8) An order shall not be made under subsection (3) of this section unless a draft of the order has been laid before the Commons House of Parliament and approved by a resolution of that House.]

Textual Amendments

F1 S. 1(1)-(6) substituted by virtue of Coal Industry Act 1977 (c. 39), s. 1(2), Sch. 1 Pt. I para. 1

F2 Words substituted by Coal Industry Act 1987 (c. 3, SIF 86), s. 1(1)(2), Sch. 1 para. 11(1)

F3 Word substituted by Coal Industry Act 1987 (c. 3, SIF 86), s. 1(1)(2), Sch. 1 para. 11(2)

F4 Words substituted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2

F5 Words substituted by Coal Industry Act 1983 (c. 60, SIF 86) s. 1

F6 Words substituted by Coal Industry Act 1980 (c. 50, SIF 86), s. 1(2)

F7 Words substituted by Coal Industry Act 1980 (c. 50, SIF 86), s. 1(3)

Modifications etc. (not altering text)

C1 S. 1 explained by Coal Industry Act 1973 (c. 8) s. 2(4)

C2 S. 1(1)(2A) and (2)(6) extended by Coal Industry Act 1973 (c. 8) s. 2(2) and 1(5) respectively

C3 S. 1(3) amended by Coal Industry Act 1980 (c. 50), s. 2(1), 2(3)

C4 S. 1(6) amended by Coal Industry Act 1980 (c. 50), s. 2(1), 2(1)

C5 The text of S. 1(7), Sch 1 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

Marginal Citations

M1 1973 c. 8.

M2 1973 c. 8.

M3 1946 c.59

2 Capital reconstruction, and application of funds, of Board. E+W+S

(1), (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8

F9 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F8 Ss. 2(1)(2) repealed by Coal Industry Act 1973 (c. 8), Sch. 2

F9 S. 2(3) repealed (31.10.1994) by 1994 c. 21, ss. 67, 68(2), Sch. 11 Pt. II; S.I. 1994/2553, art. 2

3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F10 E+W+S

Textual Amendments

F10 S. 3 repealed with saving for grants under Coal Industry Act 1971 (c. 16), s. 1 in respect of Board's financial year ending in March 1978 or in any earlier year by Coal Industry Act 1977 (c. 39), Sch. 5 Pt. I

4 Pensions or compensation of members of Board. E+W+S

(1) Without prejudice to the generality of the provisions of section 37 of the Act of 1946, regulations made under that section may contain provisions authorising the treatment of any person who, being a participant in any pension scheme to which the regulations relate, becomes a member of the [F11 Corporation] as if his service as a member of the [F11 Corporation] were service to which the pension scheme relates; and the benefit rights of any such person resulting from the operation of any such provision shall not be affected by the provisions of section 2(6) of that Act requiring any pensions or gratuities to or in respect of members of the [F11 Corporation] to be determined by [F12 the Secretary of State] with the approval of [F13 the Minister for the Civil Service].

(2) Where after the passing of this Act a person ceases to be a member of the [F11 Corporation] otherwise than on the expiry of his term of office, and it appears to [F12 the Secretary of State] that there are special circumstances which make it right that that person should receive compensation, [F12 the Secretary of State] may with the approval of [F13 the Minister for the Civil Service] require the [F11 Corporation] to make to that person a payment of such amount as may be determined by [F12 the Secretary of State] with the approval of [F13 the Minister for the Civil Service].

Textual Amendments

F11 Words substituted by Coal Industry Act 1987 (c. 3, SIF 86), s. 1(1)(2), Sch. 1 para. 11(2)

F12 Words substituted by virtue of S.I. 1969/1498, arts. 2(1), 5(6) and 1970/1537, arts. 2(2), 7(4)

F13 Words substituted by virtue of S.I. 1968/1656, arts. 2(1)(d)(e), 3(2)

Modifications etc. (not altering text)

C6 “The Act of 1946” means the Coal Industry Nationalisation Act 1946 (c. 59)

5 †Citation, construction, repeals and extent. E+W+S

(1) This Act may be cited as the Coal Industry Act 1965, and the Coal Industry Acts 1946 to 1962 and this Act may be cited together as the Coal Industry Acts 1946 to 1965.

(2) Save where the context otherwise requires, any reference in this Act to any enactment shall be construed as a reference to that enactment as amended by any other enactment, including any enactment contained in this Act.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F14

(4) This Act does not extend to Northern Ireland.

Textual Amendments

F14 S. 5(3) repealed by Statute Law (Repeals) Act 1974 (c. 22), Sch. Pt. XI

Modifications etc. (not altering text)

C7 Unreliable marginal note