The Police Act 1997 (Provisions in relation to the NCIS Service Authority) Order 1998

Articles G17, G19, G23 and G24

SCHEDULE 3 PROVISIONS SUPPLEMENTING PART G

PART I CREDIT CEILING

1.—(1) On 1st April 1998 the Authority’s credit ceiling shall be nil and, thereafter should be determined, subject to any prescribed modifications, in accordance with the following provisions of this Part of this Schedule.

(2) In sub-paragraph (1) above “prescribed” means prescribed by the Secretary of State in regulations made under Part III of Schedule 3 to the 1989 Act, which shall apply to the Authority as they apply to the NCS Service Authority; and references in those regulations to local government enactments shall be interpreted as references to the equivalent provisions of, or as applied by, this Order.

2.—(1) If a credit approval is used by the Authority to any extent as mentioned in article G17 of this Order (use of credit approvals by the Authority), then, subject to sub-paragraph (2) below, the Authority’s credit ceiling shall at that time be increased by an amount equal to the extent to which the credit approval is so used.

(2) If, in reliance on a credit approval, the Authority enters into or agrees to the variation of a credit arrangement of the same description as a credit arrangement excluded by regulations made by the Secretary of State under paragraph 11(2) of Schedule 3 to the 1989 Act then no account shall be taken under sub-paragraph (1) above of that use by the Authority of the credit approval.

3.—(1) If the Authority sets aside an amount as provision to meet credit liabilities (whether or not pursuant to a requirement to do so) then, subject to sub-paragraph (2) below, the Authority’s credit ceiling shall at that time be reduced by an amount equal to the amount so set aside (and, by virtue of this paragraph, that ceiling may, accordingly, be a negative amount).

(2) This paragraph does not apply with respect to—

(a) an amount which, in relation to a credit arrangement, other than one excluded by virtue of the application of paragraph 2(2) above, is applied or charged (as an amount of credit cover) as mentioned in paragraph (b) or paragraph (c) of article G12(3) of this Order (limits on powers to enter into credit arrangements); or

(b) so much of an amount set aside under article G24 of this order (duty to set certain amounts aside as provision to meet credit liabilities) as provision to meet credit liabilities as (in accordance with Part II of this Schedule) is referable to notional interest on credit arrangements.

(3) For the purpose of this paragraph, an amount set aside under article G24(1) of this Order (duty to set certain amounts aside as provision to meet credit liabilities) in respect of any financial year shall be treated as set aside on the last day of that year.

4.  If, the Authority applies or transfers under sub-paragraph (2) of article G25 of this Order (use of amounts set aside to meet credit liabilities) an amount set aside as mentioned in sub-paragraph (1) of that article, the Authority’s credit ceiling shall at that time be increased by an amount equal to the amount so applied or transferred.

PART II MINIMUM REVENUE PROVISION

6.—(1) Subject to sub-paragraphs (2) and (3) below, for any financial year the Authority’s minimum revenue provision shall be the aggregate of—

(a) an amount in respect of principal which, except in so far as regulations applied by paragraph 1(2) above otherwise provide, shall be the prescribed percentage of the Authority’s adjusted credit ceiling on the last day of the immediately preceding year; and

(b) an amount in respect of notional interest on each credit arrangement entered into by the Authority which came into being before the beginning of that year, other than an arrangement excluded by regulations applied by virtue of paragraph 1(2) above.

(2) If the Authority’s credit ceiling on the last day of a financial year is nil or negative amount, the Authority’s minimum revenue provision for the immediately following financial year shall be nil.

(3) In the case of a credit arrangement falling within article G11 of this Order (initial and subsequent cost of credit arrangements), the Secretary of State may provide that the amount referred to in sub-paragraph (1)(b) above is nil.

7.  In paragraph 6(1)(a) above the “prescribed percentage” means such percentage, as may be prescribed for the purposes of paragraphs 15(1)(a) and 16(1)(a) of Schedule 3 of the 1989 Act by regulations made by the Secretary of State under Part IV of that Schedule.

8.—(1) Any reference in this Part of this Schedule to the Authority’s adjusted credit ceiling at any time or their adjusted initial credit ceiling is a reference to its credit ceiling or, as the case may be, initial credit ceiling, determined in accordance with Part I of this Schedule.

(2) Without prejudice to the generality of sub-paragraph (1) above, for the purpose of determining the Authority’s adjusted credit ceiling or adjusted initial credit ceiling at any time, where regulations under paragraph 18 of Schedule 3 to the 1989 Act require amounts which are taken into account in determining the Authority’s credit ceiling or initial credit ceiling to be treated as having been repaid, in whole or in part, by reference to amounts set aside as provision for credit liabilities and also, in such cases as may be specified in the regulations, may require an authority to determine which of the amounts so taken into account are to be treated as so repaid, then the same requirements shall apply in relation to the determination of the Authority’s credit ceiling.

9.—(1) Subject to paragraph 6(3) above, for any financial year, the amount referred to in paragraph 6(1)(b) above in respect of notional interest on a credit arrangement is that determined by the formula—

where, subject to sub-paragraphs (2) and (3) below,—

• “a” is the cost of that arrangement on 1st April in that financial year; and

• “b” is the percentage rate of discount prescribed in article G11(2) of this Order (initial and subsequent cost of credit arrangements) for the financial year in which the arrangement came into being.

(2) In the case of a credit arrangement which has been varied as mentioned in article G13(3) of this Order (variation of credit arrangements), “b” in the formula in sub-paragraph (1) above is the percentage rate of discount prescribed under article G11(2) of this Order (initial and subsequent cost of credit arrangements) for the financil year in which the arrangement was so varied or, as the case may be, last varied.

(3) In the case of a credit arrangement falling within article G11(3) of this Order (initial and subsequent cost of credit arrangements) where the Secretary of State by regulations made under Part IV of Schedule 3 to the 1989 Act provides that “b” in the formula under sub-paragraph (1) of paragraph 19 of the Schedule above shall be such figure as may be specified in, or determined under, the regulations then “b” in the formula under sub-paragraph (1) above should also be the same figure as may be specified in, or determined under, those regulations.