The Education and Libraries (Northern Ireland) Order 1993

Formation of companies in connection with institutions of further education

33.  After Article 119 of the 1989 Order there shall be inserted the following Article—

“Formation of companies for purposes of Article 119(1)

119A.— (1) The governing body of an institution of further education which has a delegated budget may, in the exercise of its powers under Article 119(1), form companies under the Companies (Northern Ireland) Order 1986(1).

(2) Subject to paragraphs (3) and (4), the board responsible for the management of an institution of further education may make loans to any company formed under this Article by the governing body of that institution.

(3) Loans made under this Article shall carry interest at a rate not less than a rate determined by the Department with the consent of the Department of Finance and Personnel, and—

(a) different rates may be so determined in respect of different categories of loans;

(b) a rate may be determined by reference to a rate—

(i) specified by or under any other statutory provision; or

(ii) ascertainable by such other means as the Department may with the consent of the Department of Finance and Personnel, specify.

(4) Before determining a rate under paragraph (3), the Department shall consult any boards and other bodies with which consultation appears to the Department to be desirable.

(5) The accounts kept by a board under Article 119 of the 1986 Order shall include a separate account of any loans made and repayments of principal or interest received by that board under this Article.”.

(1)

1986 NI 6