Borrowing powers of the HCA
Section 20 - Powers to borrow
44.This section enables the HCA to borrow on a short-term basis, such as by overdraft, from any person. If the borrowing is not on a short-term basis the HCA may borrow only from the Secretary of State or the European Investment Bank. The HCA may only borrow in sterling.
Section 21 - Loans by the Secretary of State
45.The Secretary of State may lend money to the HCA.
46.The Secretary of State may impose such terms and conditions as she considers appropriate, including regarding repayment with or without interest.
Section 22 - Guarantees by the Secretary of State
47.If the HCA takes out a loan with anyone other than the Secretary of State under section 20, the Secretary of State may guarantee the repayment of this loan, including any interest payable on it.
48.The guarantee may be subject to such terms and conditions as the Secretary of State may consider appropriate. In respect of any sums paid out under the guarantee, the Secretary of State may direct the HCA to repay such amounts as the Secretary of State may direct towards repayment of those sums and towards interest, at such rates of interest as the Secretary of State may direct.
49.The Secretary of State must lay a statement of the guarantee before Parliament immediately after giving the guarantee annually until all liability under the guarantee is discharged.
Section 23 - Financial limits
50.The HCA’s total borrowings, which include those of any subsidiary (other than sums borrowed from the HCA) must not exceed £2,300 million unless the Secretary of State provides for an increase to this limit by order, up to a maximum ceiling of £3,000 million. These limits are the same as for the Housing Corporation.