British Telecommunications Act 1981

74 Limitation of indebtedness

(1) The Post Office shall not have the power to borrow money except in accordance with section 73.

(2) The aggregate of—

(a) the amount outstanding, otherwise than by way of interest, in respect of—

(i) money borrowed by the Post Office or any of its wholly owned subsidiaries, other than money borrowed on excluded loans ;

(ii) sums issued by the Treasury in fulfilment of guarantees under section 38 of the 1969 Act; and

(iii) the debt assumed by the Post Office under section 33 of that Act; and

(b) sums received by it under section 3(1) of the [1976 c. 10.] Post Office (Banking Services) Act 1976 (public dividend capital),

shall not at any time exceed £1,200 million or such greater sum, not exceeding £1,700 million, as the Secretary of State may from time to time by order specify.

(3) A loan is an excluded loan for the purposes of subsection (1) if it consists of money borrowed—

(a) by the Post Office from one of its wholly owned subsidiaries ; or

(b) by one of its wholly owned subsidiaries from another such subsidiary or from the Post Office.

(4) An order under subsection (2) shall be made by statutory instrument, and no such order shall be made unless a draft thereof has been approved by a resolution of the Commons House of Parliament.

(5) This section shall come into operation on the appointed day.