The Local Authorities (Capital Finance and Approved Investments) (Amendment No. 2) Regulations 1995

Use of amounts set aside to meet credit liabilities

9.  In regulation 26A—

(a) for the definition of “relevant authority” substitute the following—

““relevant authority” means a local authority in England whose credit ceiling, as determined under Part III of Schedule 3 to the Act, is, on the relevant date for any financial year, a negative amount, and who have no money outstanding by way of borrowing other than—

(a) short-term borrowing (within the meaning of section 45(6));

(b) borrowing undertaken under section 5 of the City of London (Various Powers) Act 1924; or

(c) borrowing undertaken before 24th August 1995, other than borrowing by the issue of stock on or after 15th December 1993, from a person who is not a relevant lender.”; and

(b) at the end add the following—

““relevant lender” means the Public Works Loan Board, the Bank of England, the European Investment Bank, a body mentioned in any of paragraphs 1 to 17, or in paragraph 28 or 29, of Part II of the Schedule to the Local Authorities (Capital Finance) (Approved Investments) Regulations 1990(1), an authorised institution within the meaning of the Banking Act 1987(2) or a building society within the meaning of the Building Societies Act 1986(3).”.

(1)

S.I. 1990/426; amended by S.I. 1991/501 and S.I. 1992/1353.

(2)

1987 c. 22.

(3)

1986 c. 53.