7(1)On the assumption that the consideration falling within paragraph 6 above was received by the local authority on 1st April 1990, there shall be determined, in accordance with section 61 of this Act, the amount of the notional capital receipt referable to the consideration and, from that, there shall be deducted so much (if any) of the consideration as is in money and is paid within the period referred to in paragraph 6(a) above.
(2)If the amount determined under sub-paragraph (1) above (“the non-monetary consideration”) exceeds the payments (if any) in respect of prescribed expenditure which, in the case in question, the local authority are taken to make for the purposes of Part VIII of the [1980 c. 65.] Local Government, Planning and Land Act 1980, the local authority shall set aside, as provision to meet credit liabilities, the amount specified in sub-paragraph (3) below and that amount shall be so set aside on 1st April 1990 or, if it is later, at the time of the disposal or the assignment or waiver of the repayment or payment in question.
(3)Except in so far as regulations made or directions given by the Secretary of State otherwise provide, the amount referred to in sub-paragraph (2) above is that which, under section 59 of this Act, would be the reserved part of a capital receipt which—
(a)is of an amount equal to the excess referred to in that sub-paragraph; and
(b)is received in respect of a disposal or a right to a repayment or payment of the description in question.