Chwilio Deddfwriaeth

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British Telecommunications Act 1981

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27Limitation of indebtedness

(1)The Corporation shall not have power to borrow money except in accordance with section 26.

(2)The aggregate amount outstanding, otherwise than by way of interest, in respect of—

(a)money borrowed by the Corporation or any of its wholly owned subsidiaries, other than money borrowed on excluded loans; and

(b)sums issued by the Treasury in fulfilment of guarantees under section 29,

shall not at any time exceed £5,000 million or such greater sum, not exceeding £6,500 million, as the Secretary of State may from time to time by order specify.

(3)A loan is an excluded loan for the purposes of subsection (2) if it consists of money borrowed—

(a)by the Corporation from one of its wholly owned subsidiaries ; or

(b)by one of its wholly owned subsidiaries from another such subsidiary or from the Corporation.

(4)An order under subsection (2) shall be made by statutory instrument, and no such order shall be made unless a draft thereof has been approved by a resolution of the Commons House of Parliament.

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