Transport Act 1968

12 Borrowing powers of Executive. U.K.

(1) The provisions of this section shall have effect with respect to borrowing by the Executive for a [F1 designated][F1 passenger transport] area.

(2) The Executive may borrow temporarily, by way of overdraft or otherwise, from any person such sums as they may require for meeting their obligations and discharging their functions under this Part of this Act; but the Executive shall ensure that the aggregate of the amounts outstanding in respect of any temporary loans raised by thg Executive under this subsection or raised by any subsidiary of the Executive does not at any time exceed such amount as the Authority for the area may for the time being have approved.

(3) The Executive may, with the approval of the Authority for the area, borrow otherwise than by way of temporary loan from any person and in any manner such sums as the Executive may require for all or any of the following purposes, namely—

(a) for meeting any expenses properly chargeable to capital, being expenses incurred in connection with the provision or improvement of assets in connection with their business;

(b) for the provision of working capital;

(c) for acquiring an undertaking or part of an undertaking;

(d) for the making of any payment which they are required by or under this Part of this Act to make by way of compensation. . . F2

(e) for subscribing for or acquiring securities of a body corporate otherwise than by way of investment;

(f) for the payment of interest charged to capital account under section 11(3) of this Act;

(g) to pay off any debt incurred by the Executive or any liability assumed by or transferred to the Executive in pursuance of this Part of this Act;

(h) for making any loan, or fulfilling any guarantee given, in pursuance of the powers conferred by section 10(1)(xviii) of this Act;

(j) for any purpose for which capital moneys are properly applicable, whether or not specified in the foregoing paragraphs of this subsection;

and the Executive shall exercise their control over any subsidiary of theirs so as to ensure that the subsidiary does not borrow otherwise than by way of temporary loan from any person without the approval of the Authority or for any purpose other than purposes of the subsidiary such as are specified in paragraphs (a) to (e) and (j) of this subsection or for paying off any debt incurred by the subsidiary.

(4) [F3 Each of the councils of constituent areas][F3 The Authority for the Executive’s area] shall have power to lend money to the Executive [F4 but only if the rate of interest payable by the Executive to the Authority in respect of the loan is not less than that which would be payable by the Authority if they were to borrow the same sum on equivalent terms (disregarding any terms as to interest) from another person]

(5) All moneys borrowed by the Executive shall be charged indifferently on all their revenues, and all securities created by the Executive shall rank equally without any priority; but nothing in this subsection shall—

(a) apply to any money borrowed by way of temporary loan without security; or

(b) affect any right to priority conferred by a security for any liability assumed by or transferred to the Executive in pursuance of this Act.

F5 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) The Executive shall be deemed to be a local authority for the purposes of—

(a) the enactments relating to loans by or borrowing from the Public Works Loan Commissioners;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M1

Textual Amendments

F1 Words substituted (E.W.S.) by Transport Act 1985 (c. 67, SIF 126), S. 57(6), Sch. 3 para 2(a)

F2 Words repealed by Transport Act 1985 (c. 67, SIF 126), ss. 57(6), 139(3), Sch. 3 para. 6(a), Sch. 8

F3 Words substituted (E.W.S.) by Transport Act 1985 (c. 67, SIF 126), s. 57(6), Sch. 3 para. 6(b)(i)

F4 Words substituted (E.W.S.) by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 194(1), Sch. 11 para. 16

F5 S. 12(6) repealed (E.W.) by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 194(2), Sch. 12 Part I, and (E.W.S.) (11.2.1991) by Government Trading Act 1990 (c. 30, SIF 99:1), s. 4(2), Sch. 2 Pt. I; S.I. 1991/132, art. 2; and repealed (N.I.) (1.4.1991) by S.I. 1991/761, art. 9(2), Sch. 2; S.R. 1991/116, art.2

Modifications etc. (not altering text)

C1 S. 12(2) amended (E.W.S.) by Transport Act 1985 (c. 67, SIF 126), s. 133(2)

C2 S. 12(3)(d) amended (E.W.S.) by Transport Act 1985 (c. 67, SIF 126), s. 133(2)

C3 S. 12(3)(g) amended (E.W.S.) by Transport Act 1985 (c. 67, SIF 126), s. 133(2)

C4 S. 12(5)(b) amended (E.W.S.) by Transport Act 1985 (c. 67, SIF 126), s. 133(2)(b)

Marginal Citations

M1 1975 c. 30