Explanatory Notes

Water Industry (Scotland) Act 2002

2002 asp 3

1 March 2002

The Act

Part 3 – Scottish Water

Section 43 – Guarantees

110.This section, based on section 85 of the 1994 Act, gives the Scottish Ministers power to guarantee, on whatever terms and conditions they wish, borrowings by Scottish Water and its subsidiaries (subsection (1)). The Scottish Ministers must inform the Scottish Parliament immediately after they issue a guarantee (subsection (2)). Scottish Water must reimburse the Scottish Ministers on terms to be determined by them whenever they are required to honour a guarantee (subsection (3)).

111.Subsection (4) applies the Companies Act definition of “subsidiary”.