Part 1Capital finance etc and accounts
Chapter 1Capital finance etc
Supplementary
I117External funds
1
For the purposes of this Chapter—
a
borrowing of money by a local authority for the purposes of an external fund shall be treated as not being borrowing by the authority;
b
the temporary use by a local authority of money forming part of an external fund, if not for a purpose of the fund, shall be treated as borrowing by the authority;
c
entry into a credit arrangement by a local authority for the purposes of an external fund shall be treated as not being entry into a credit arrangement by the authority;
d
a disposal by a local authority of—
i
an interest in an asset which, at the time of the disposal, is an asset of an external fund, or
ii
an investment held for the purposes of such a fund,
shall be treated as not being a disposal by the authority;
e
the making of an investment by a local authority for the purposes of an external fund shall be treated as not being the making of an investment by the authority;
f
expenditure incurred by a local authority in respect of payments out of an external fund shall be treated as not being expenditure of the authority.
2
In this section, references to an external fund, in relation to a local authority, are to—
a
a superannuation fund which the authority is required to keep by virtue of the Superannuation Act 1972 (c. 11), or
b
a trust fund of which the authority is a trustee.