3Application of financial limit of British Airways Board to foreign currency borrowings.
(1)For the purposes of section 9(1) of the [1977 c. 13.] British Airways Board Act 1977 the sterling equivalent of any amount borrowed by the British Airways Board (whether before or after the passing of this Act) in a currency other than sterling shall, subject to subsections (3) and (4) below, be determined by reference to the London market spot selling rate for sterling at the close of the last working day before that on which that amount was received by the Board or, if there is no such rate, by reference to such rate as may be specified by the Secretary of State.
(2)Where in the case of any loan amounts have been received by the Board on different days and an amount less than the aggregate of those amounts has been repaid, any question under subsection (1) above as to the day on which the outstanding amount was received shall, in the absence of any indication to the contrary, be determined by apportioning the repayment rateably between the amounts received.
(3)Where pursuant to a scheme established by the Treasury the Board has (whether before or after the passing of this Act) contracted to purchase currency other than sterling for the purpose of enabling the Board to repay money borrowed by it in that currency, the sterling equivalent of any amount comprised in the money to which the contract relates shall for the purposes of the said section 9(1) be determined by reference to the rate of exchange specified in the contract.
(4)Subsection (1) above does not apply to money borrowed by overdraft.