The Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016 No. 123

PART 2 Borrowing by local authorities

Borrowing by way of a credit arrangement

5.—(1) A local authority may incur debt through borrowing by way of a credit arrangement for financing capital expenditure of the authority.

(2) The amount of external debt to be recognised by a local authority in respect of a credit arrangement is the liability that requires to be recognised as arising from the credit arrangement in accordance with proper accounting practices.