38Loans by Public Works Loan Commissioners
(1)The Secretary of State may, if he thinks it appropriate, make payments to the Public Works Loan Commissioners so as to reduce or extinguish such debt (whether then due or not) of a local authority in England to those Commissioners as he thinks fit.
(2)The National Assembly for Wales may, if it thinks it appropriate, make payments to the Public Works Loan Commissioners so as to reduce or extinguish such debt (whether then due or not) of a local authority in Wales to those Commissioners as the Assembly thinks fit.
(3)The amount—
(a)required to extinguish a debt, or
(b)by which a payment reduces a debt,
shall be such as may be determined by the Commissioners.
(4)The Commissioners may refuse to accept a payment which the Secretary of State or the National Assembly for Wales proposes to make to them under this section.
(5)In this section “local authority” means—
(a)in relation to England—
(i)a district council,
(ii)a county council that is the council for a county in which there are no district councils,
(iii)a London borough council,
(iv)the Common Council of the City of London, or
(v)the Council of the Isles of Scilly; and
(b)in relation to Wales, a county council or a county borough council.