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Marine and Coastal Access Act 2009

Financial Provisions

115.These sections put in place the financial arrangements needed to enable the MMO to carry out its responsibilities.

Section 32: Grants

116.This section enables the Secretary of State to make the appropriate funds available to the MMO by way of grant.

Section 33: Borrowing powers

117.This section allows the MMO to borrow money as necessary to enable it to carry out its functions. The money may be borrowed from the Secretary of State or from others with the agreement of the Secretary of State. The Secretary of State may make his agreement conditional on, for example, the MMO repaying the loan by a certain date.

Section 34: Limit on borrowing

118.This section limits the MMO’s ability to borrow to £20 million, although the Secretary of State may increase this (up to £80 million) by order, subject to approval by the House of Commons.

Section 35: Government loans

119.This section enables the Secretary of State to lend money to the MMO and makes the loan subject to any appropriate repayment conditions. It requires the Secretary of State to keep an account of the amounts loaned and received, and to make this available to the Comptroller and Auditor General for audit purposes. Both the account and the auditor’s report must be laid before Parliament. In accordance with Government financial procedural requirements, the Secretary of State is required to pay into the Consolidated Fund any repayments of principal, and any payments of interest, made by the MMO.

Section 36: Government guarantees

120.This section allows the Secretary of State to guarantee loans, interest and other financial obligations of the MMO.

121.If a guarantee is given under the section, the Secretary of State must lay a statement before each House of Parliament.

122.If any sum is paid out in fulfilment of such a guarantee, the Secretary of State must also lay a statement before each House of Parliament and the MMO must make such payments to the Secretary of State towards repayment of the sum, or by way of interest on the outstanding balance, as the Secretary of State may direct.

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