Financial reconstruction

38AB Power to extinguish loan obligations of development corporation.

1

The Secretary of State may, with the consent of the Treasury, by order extinguish to such extent as may be specified in the order any liabilities of a development corporation in respect of advances made by him to the corporation under section 37(1) of this Act or section 12(1) of the New Towns Act 1946.

2

Where liabilities are extinguished under this section the assets of the National Loans Fund shall be reduced by amounts corresponding to the liabilities so extinguished.

3

No order shall be made under this section unless a draft of it has been laid before, and approved by, the Commons House of Parliament.