Transport Act 1978

17 Reduction of capital debt

(1) On the day appointed under section 24(1) below for the coming into force of this section, there shall be extinguished so much of the liability of the National Freight Corporation on that day in respect of—

(a) the commencing capital debt of the Corporation under section 3(2) of, and Schedule 2 to, the 1968 Act; and

(b) the principal of money borrowed by the Corporation from the Secretary of State under section 19 of the 1962 Act as applied by section 3(1)(b) of the 1968 Act,

as is necessary to reduce that liability to £100 million.

(2) Of the amount in respect of which the Corporation's liability is extinguished by subsection (1) above, such part as the Secretary of State may, with the approval of the Treasury, direct shall be treated as reducing the commencing capital debt of the Corporation and the remainder shall be treated as reducing the principal of money borrowed as mentioned above.

(3) The assets of the National Loans Fund shall accordingly be reduced by the amount in respect of which the Corporation's liability is so extinguished.