Oil and Pipelines Act 1985

Borrowing and investment powers etc.

1 (1) Subject to the following provisions of this paragraph and to paragraph 2 below, the Agency may borrow temporarily, by way of overdraft or otherwise—

(a) in sterling from the Secretary of State ; or

(b) with the consent of the Secretary of State and the approval of the Treasury, in sterling or a currency other than sterling from a person other than the Secretary of State,

such sums as may be required for meeting the obligations and exercising and performing the functions of the Agency or any of its wholly owned subsidiaries.

(2) The Agency shall not—

(a) borrow money otherwise than in accordance with sub-paragraph (1) above ; or

(b) except with the consent of the Secretary of State and the approval of the Treasury—

(i) lend money, charge any of its actual or future assets or give any surety or guarantee for the performance by another person of any obligation ; or

(ii) promote or participate in the promotion of, or acquire or relinquish membership of or any interest in or securities issued by, a body corporate.

(3) The Agency shall secure that none of its wholly owned subsidiaries—

(a) borrows money otherwise than temporarily ; or

(b) does anything without the permission of the Agency which, if done by the Agency, would under this paragraph require the consent of the Secretary of State and the approval of the Treasury.

(4) The consent of the Secretary of State and the approval of the Treasury shall be required for the giving of any permission for the purposes of sub-paragraph (3) above.

(5) The Secretary of State, in giving a consent for the purposes of this paragraph, may impose such conditions as he thinks fit.

2 (1) The aggregate of the amounts outstanding, otherwise than by way of interest, in respect of—

(a) sums borrowed by the Agency or any of its wholly owned subsidiaries from outside persons ;

(b) sums for the repayment of which by outside persons the Agency or any of its wholly owned subsidiaries has given any surety or guarantee ; and

(c) sums issued by the Treasury in fulfilment of guarantees given by them under paragraph 4 below,

shall not at any time exceed £20 million or such greater amount, not exceeding £80 million, as the Secretary of State may by order specify.

(2) In this paragraph " outside person " means a person other than the Agency or any of its wholly owned subsidiaries.

(3) An order under this paragraph 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 House of Commons.