The Local Authorities (Borrowing) Regulations 1990

Payments to holders of loan instruments

8.  (1)  Subject to paragraphs (3) and (4) below, any payment which falls to be made by a local authority to the holder of a loan instrument shall be made by means of a cheque or warrant made payable to the holder, and in the case of a loan particulars of which are required to be registered under section 46 of the Act, the cheque or warrant shall be sent to the address which is entered in the register as the address of the person to whom payments are due.

(2) Before making any payments in respect of principal, the authority or, as the case may be, the registrar may require the production of—

(a)the loan instrument;

(b)a certificate, issued in accordance with regulation 9(7) or in accordance with any other statutory requirement, relating to a loan in respect of which the instrument has been issued;

(c)instructions for payment; or

(d)such indemnity as the authority, or as the case may be, the registrar consider appropriate.

(3) Where two or more persons are jointly entitled to a payment in respect of a loan particulars of which are required to be registered under section 46 of the Act, the payment shall, subject to paragraph (4) below, be made to the person whose name or description is first mentioned in the register in the case of that loan.

(4) The authority or, as the case may be, the registrar may make a payment by a different means if requested by the holder of the loan instrument to do so, or where two or more persons are jointly entitled to a payment, if so requested by all those persons.

(5) Where, in the case of a loan particulars of which are required to be registered under section 46 of the Act, a payment is made by means of a cheque or warrant, the posting of the cheque or warrant to a person shall, as respects the liability of the authority to make the payment, be equivalent to the delivery of the cheque or warrant to the person.