The Travel Concession Schemes Regulations 1986

8.—(1) The payment periods and payment days shall be specified in the reimbursement arrangements and—

(a) payment periods shall not be longer than three months; and

(b) in relation to each payment period, the payment day shall not be later than the day which is half way between the first and last days of the payment period (and, in ascertaining the payment day, no account shall be taken of half days).

(2) Each reimbursement payment shall not be less than 85% of the amount estimated by the authority to be due to the operator in respect of the relevant payment period.

(3) The balance of each reimbursement payment shall be paid, subject to any adjustments shown to be necessary in the light of information available to the authority pursuant to arrangements giving effect to these Regulations, not later than 3 months after the end of the relevant payment period.

(4) Subject to paragraph (5) of this regulation, if any such balance as is mentioned in paragraph (3) of this regulation is not paid in accordance with that paragraph, provision shall be made for the authority to pay interest (at a rate not less than the lowest rate at which the authority are able to borrow at the time) on the amount for the time being unpaid for the period beginning with the last date on which the balance should have been paid in accordance with paragraph (3) and ending with the date of actual payment.

(5) Interest shall not be payable until a scheme has been in operation for 6 months nor in respect of any period falling wholly or partly within the first 6 months of operation of a scheme.

(6) If the amount of any reimbursement payment made in accordance with paragraph (2) of this regulation in respect of any payment period exceeds the total amount of that payment found to be payable in respect of that period, provision shall be made for the authority to notify the operator in writing accordingly and may thereafter deduct the amount of the excess from the reimbursement payments due to that operator in respect of any subsequent payment period.

(7) If the circumstances described in paragraph (6) of this regulation arise in relation to a person who is no longer an operator, the authority shall notify that person accordingly and, unless he disputes the existence or amount of the excess, that person shall pay the amount of the excess to the authority within 30 days of the date of receipt of the notification.

(8) Provision may be made for any reimbursement payment due in accordance with paragraphs (2) and (3) of this regulation to be made otherwise than in accordance with this regulation in any case where an operator fails to supply information in accordance with reimbursement arrangements giving effect to these Regulations—

(a) in the case of a payment due in accordance with paragraph (2), in sufficient time to allow the authority to form a reasonable estimate of the amount of the payment; or

(b) in the case of a payment due in accordance with paragraph (3), in sufficient time to allow the authority to calculate the amount of the payment.

(9) Subject to paragraph (8) of this regulation, provision shall be made for any reimbursement payment or any part of such a payment due to an operator in respect of concessions provided during any period of 12 months commencing on a date specified in the arrangements but not paid to be paid not later than 3 months after the expiry of that period.