46Limit on borrowing and other investment
(1)Subject to subsections (2) and (3) of this section, the aggregate of—
(a)the amount outstanding in respect of the principal of moneys borrowed by the Board (including the loans mentioned in subsection (1)(a) and (c) of the preceding section);
(b)the payments made to the Board under section 43(1) of this Act (including the payment mentioned in subsection (1)(b) of the preceding section); and
(c)the amount outstanding in respect of the principal of moneys borrowed by either of the corporations,
shall not at any time exceed £560 million or such greater sum not exceeding £700 million as the Secretary of State may from time to time by order specify.
(2)The following sums shall be disregarded for the purposes of the preceding subsection, that is to say—
(a)any sums borrowed by the Board from either of the corporations or by either of the corporations from the other of them or from the Board ;
(b)such part of the payment mentioned in subsection (1)(b) of the preceding section or of the sums deemed to have been lent by virtue of section 51(2) (a) of this Act as represents the sums in respect of which directions were given under section 14(3)(b) of the Act of 1967 (which provided for certain sums in BOAC's reserve fund to be treated as paid by the Secretary of State under that section);
(c)any sum which is the subject of directions under section 52(1)(b) of this Act.
(3)Nothing in subsection (1) of this section shall prevent the Board or either of the corporations from borrowing in excess of the limit imposed by that subsection for the purpose of paying off a loan or redeeming stock which the Board is or the corporation in question are required or entitled to redeem.
(4)Sections 41 to 43 of this Act shall have effect subject to the preceding provisions of this section.