(1)If in the case of any designated authority no maximum has been prescribed under section 1 above before the relevant date, the Secretary of State may prescribe an interim maximum under this section by a direction in writing served on the authority.
(2)For the purposes of subsection (1) above the relevant date in relation to a maximum under section 1 above for any financial year is—
(a)in the case of a rate, 1st March; or
(b)in the case of a precept, 15th February,
in the preceding financial year.
(3)An interim maximum shall have effect until replaced by a maximum prescribed under section 1 above (a " final maximum "); and where an interim maximum is prescribed in the case of any authority the Secretary of State shall as soon as reasonably practicable replace it with a final maximum.
(4)If an authority makes a rate or issues a precept by reference to an interim maximum and the final maximum is higher—
(a)a substituted rate or precept complying with the final maximum may be made or issued by the authority under section 3 of the [1982 c. 32.] Local Government Finance Act 1982 without regard to subsection (2) of that section (which limits the estimated product of a substituted rate or precept by reference to the estimated product of the rate or precept for which it is substituted) ; and
(b)that subsection shall not prevent a substituted rate being made by any other authority in pursuance of subsection (4)(a) of that section for giving effect to a precept substituted in accordance with paragraph (a) above.
(5)Section 1(4) and (5) above shall apply to an interim maximum as they apply to a final maximum.