Local Government (Scotland) Act 1947

Capital payments from loans fund.

7 (1) Capital money in the loans fund may be applied—

(a) in the exercise of any statutory borrowing power of the council duly authorised by the council, by advancing the required amount to the appropriate borrowing account of the council or in making loans to other local authorities;

(b) in the redemption of securities created by the council, in the purchase of stock for extinction or in the repayment of any money borrowed by the council;

(c) in defraying the expenses incurred by the council in the creation and issue of stock so far as the same are not defrayed under rule 13 hereof; and

(d) in defraying any other charges which are directed in pursuance of these rules to be defrayed out of capital money in the loans fund.

(2) Any capital money in the loans fund, not so applied or not about to be so applied within a reasonable period, shall be invested in trustee securities, and the sums realised by the sale of such securities shall on receipt be paid into the loans fund as capital money.

(3) Capital money in the loans fund shall not be applied otherwise than in accordance with the provisions of the preceding paragraphs of this rule.