2(1)Subject to paragraph 4 below, the Secretary of State may, with the approval of the Treasury, make loans of such amounts as he thinks fit towards qualifying expenditure.
(2)A loan under this paragraph—
(a)may be made at such times, in such manner and subject to such conditions as the Secretary of State may with the approval of the Treasury determine; and
(b)shall be repaid to him at such times and by such methods, and interest thereon shall be paid to him at such rates and at such times, as he may, with the approval of the Treasury, from time to time direct.
(3)Any sums required by the Secretary of State for making loans under this paragraph shall be paid out of money provided by Parliament.
(4)Any sums received under sub-paragraph (2) above by the Secretary of State shall be paid into the Consolidated Fund.
(5)It shall be the duty of the Secretary of State—
(a)to prepare in respect of each financial year, in such form as the Treasury may direct, an account of sums issued to him for loans under this paragraph or received by him under this paragraph, and of the disposal by him of those sums; and
(b)to send the account to the Comptroller and Auditor General not later than the end of November in the following financial year;
and the Comptroller and Auditor General shall examine, certify and report on the account and shall lay copies of it and of his report before each House of Parliament.