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Local Authorities Loans Act 1945

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This is the original version (as it was originally enacted).

8Use by local authority of moneys forming part of capital funds

(1)Notwithstanding anything in any enactment, a local authority may use, for any purpose for which the authority has a statutory power to borrow, any moneys forming part of, but not for the time being required for the purposes of, any capital fund established by the authority; and where such moneys are so used the following provisions shall have effect:—

(a)the moneys so used shall be repaid to the capital fund as follows :—

(i)they shall be repaid as and when they are required for the purposes of the capital fund;

(ii)if not required to be repaid earlier under sub-paragraph (i) of this paragraph, they shall be repaid within the period within which a loan raised under the statutory power would be repayable, or at such time before the expiration of that period as the authority may resolve ; "

(iii)the repayment shall be made out of the revenue fund of the authority, or out of moneys which would have been applicable to the repayment of a loan raised under the statutory power, and shall be made by the method by which a loan raised under the statutory power would be repayable ;

(b)in the accounts of the revenue fund of the authority, an amount equal to interest at the appropriate rate on the moneys so used and for the time being not repaid shall be "credited to the capital fund and debited to the undertaking or purpose for which the moneys are so used;

(c)the statutory power shall be deemed to be exercised by the use of moneys under this section as fully in all respects as if a loan of the same amount had been raised in exercise of the power, and the provisions of any enactment as to the reborrowing of sums raised under that power shall apply accordingly.

(2)In this section the following expressions have the meanings hereby respectively assigned to them—

(a)"capital fund" means any fund established for the repayment of debt, or as a reserve, or for the maintenance, renewal or repair of property, or for superannuation of staff, or for insurance, or otherwise for meeting future expenditure of a capital or non-recurring nature, or for any like purpose ;

(b)" interest at the appropriate rate" means interest at such rate as may be determined by the authority to be equal as nearly as may be to the rate of interest which would be payable on a loan raised on mortgage under the statutory power;

(c)" revenue fund " means the county fund, general rate fund or other fund into which the receipts of the authority are payable ;

(d)" statutory power to borrow " means a power to borrow conferred, by or under any enactment, but does not include the power to borrow by way of temporary loan or overdraft conferred by paragraph (a) of subsection (1) of section two hundred arid fifteen of the Local Government Act, 1933, or by paragraph (a) of subsection (1) of section one hundred and thirty-nine of the London Government Act, 1939.

(3)The powers conferred by this section shall be deemed to be in addition to, and not in derogation of, the powers conferred by any other enactment.

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