The Local Authority Stocks and Bonds (Scotland) Amendment Regulations 1991

Amendment of the principal Regulations

2.—(1) In the cross heading of regulation 3 of the principal Regulations, the words “and bonds” shall be deleted.

(2) For paragraph (1) of regulation 4 of the principal Regulations(1) there shall he substituted the following:—

“Issue of Bonds

4.— (1) Every bond issued by a local authority shall, subject to the next following paragraph—

(a) bear interest at such rate (whether fixed or variable) as the local authority shall determine at the time of issue of the bond;

(b) if it is a negotiable bond, be issued for a period of not less than one year; and

(c) be issued on terms such that the total of payments which fall to be made by the local authority under the bond, other than payments in respect of interest, shall not, on the date on which the bond is issued, exceed the amount of money borrowed by the authority under the bond by more than—

(i) fifteen per cent of the amount borrowed, or

(ii) if less, the product of one half of one per cent of the amount borrowed multiplied by the number of relevant years,

and, for the purposes of this sub-paragraph, the “number of relevant years” means the number of complete periods of twelve months in the period beginning on the date on which the bond is issued and ending on the last date by which all payments by the authority under the bond fall to be made.”.

(1)

Regulation 4 was amended by S.I. 1984/1652.