Air Corporations Act 1966

6 Borrowing powers of Corporations and Treasury guarantees

(1) The British Overseas Airways Corporation and the British European Airways Corporation (hereafter in this Act referred to as " the Corporations") may borrow, from such persons and on such terms as the Minister may with the approval of the Treasury from time to time specify, any sums of foreign currency required by either of the Corporations for defraying expenditure properly chargeable to capital account, including the repayment of any money borrowed by that Corporation for defraying expenditure properly so chargeable :

Provided that nothing in this subsection shall authorise either of the Corporations to borrow in excess of the limit imposed for that Corporation by section 12 of the principal Act as for the time being in force.

(2) The Treasury may guarantee, in such manner and on such conditions as they think fit—

(a) the repayment of, and the payment of interest on and other charges in respect of, any sums borrowed by either of the Corporations under subsection (1) above ; and

(b) the payment by either of the Corporations of any other debt incurred by it, being a debt which is to be discharged in foreign currency;

and subsections (2) to (5) of section 10 of the principal Act (which provide for the issue out of the Consolidated Fund of sums required for fulfilling guarantees under that section, for the repayment of such sums and for the laying before Parliament of statements and accounts in respect of such guarantees) shall have effect in relation to any guarantee under this subsection as they have effect in relation to a guarantee under that section and as if, in subsection (3)(b) of that section, references to a temporary loan included references to any such sums or debts as are mentioned in paragraphs (a) and (b) of this subsection, the reference to interest on such a loan included a reference to charges other than interest in respect of such sums and the reference to the date of the raising of such a loan included a reference to the date when any such debt is incurred.

(3) Section 8(3) of the principal Act (power of Corporations to borrow from Minister for financing accumulated deficits on revenue account) and section 1(2) of the [1956 c. 3 (5 & 6 Eliz. 2).] Air Corporations Act; 1956 (power of British Overseas Airways Corporation to borrow I from certain banks for the purpose of buying aircraft manufactured in the United States of America) shall cease to have effect.

(4) In this section " foreign currency " means any currency other than sterling.