Public Works Loans Act 1964

2 Interest on loans

(1) Any sums borrowed from the Local Loans Fund after the passing of this Act shall bear interest at such rates—

(a) as may be fixed by the Treasury from time to time having regard to the length of time for which those sums are borrowed; and

(b) as in the opinion of the Treasury are sufficient to enable those sums to be borrowed without loss to that Fund or the Exchequer;

and different rates may be fixed in respect of different sums borrowed for the same length of time.

(2) In the case of sums borrowed as aforesaid otherwise than on the security of local rates—

(a) the rates of interest may differ from those which would be applicable if those sums had been borrowed on such security;

(b) in fixing the rate of interest in respect of any sum borrowed the Treasury may take into account the nature and value of the security on which that sum is borrowed.

(3) Any reference in any Act passed, or in any other document made, before the date of the passing of this Act to the rate which at a particular time was the rate fixed by the Treasury under section 1 of the Public Works Loans Act 1897 in respect of loans of a particular class shall be construed, where that time falls after that date, as a reference to the rate which at that time was the rate fixed by the Treasury under this section in respect of loans of that class made on the security of local rates or, where there is more than one rate so fixed, to such of those rates as the Treasury may from time to time direct either generally or with respect to particular Acts or other documents.

(4) The Treasury shall cause—

(a) the rates of interest fixed from time to time under this section in respect of sums borrowed on the security of local rates; and

(b) any direction given under subsection (3) of this section,

to be published in the London and Edinburgh Gazettes as soon as may be after the fixing of those rates or, as the case may be, the giving of that direction.

(5) For the purposes of this section—

(a) the expression " local rate " means any rate levied or assessed, the proceeds of which are applicable to public local purposes, and which is levied on the basis of a valuation of property, and includes any sum which, though obtained in the first instance by a precept, certificate, or other instrument requiring payment from some authority or officer, is or can be ultimately raised out of such a rate as aforesaid ;

(b) the expression " security of local rates" includes a security guaranteed by a local rate.