Iron and Steel Act 1982

16 Borrowing powers of the Corporation etc.

(1) The Corporation may borrow temporarily, by way of overdraft or otherwise, either from the Secretary of State or, with the consent of the Secretary of State and the approval of the Treasury, from any other person, such sums in sterling as the Corporation may require for—

(a) meeting their obligations or exercising and performing their functions under this Act; or

(b) lending money temporarily to a subsidiary of theirs.

(2) The Corporation may borrow (otherwise than by way of temporary loan) from the Secretary of State, or, with his consent and the approval of the Treasury, from the Commission of the European Communities or the European Investment Bank, such sums in sterling as they may require for all or any of the following purposes—

(a) the provision of money for meeting any expenses incurred by the Corporation or a subsidiary of theirs in connection with any works the cost of which is properly chargeable to capital;

(b) the provision of working capital required by the Corporation or a subsidiary of theirs ;

(c) the acquisition under section 2 above of any interests in, or property or rights of, a company or the formation under that section of a company ;

(d) the lending of money to a subsidiary of the Corporation (otherwise than by way of temporary loan);

(e) the repayment of any money borrowed by the Corporation ;

(f) any other purpose for which capital moneys are properly applicable.

(3) The Corporation may, with the consent of the Secretary of State (which shall require the approval of the Treasury), borrow any sum in a currency other than sterling which they have power to borrow in sterling from the Secretary of State.

(4) Without prejudice to the preceding provisions of this section, the Corporation may, without obtaining the consent of the Secretary of State or the approval of the Treasury under this section—

(a) borrow temporarily, by way of overdraft or otherwise, from a subsidiary of the Corporation such sums in any currency as the Corporation may require for—

(i) meeting their obligations or exercising and performing their functions under this Act; or

(ii) lending money temporarily to another subsidiary of the Corporation;

(b) borrow (otherwise than by way of temporary loan) from a subsidiary of the Corporation such sums in any currency as the Corporation may require for all or any of the purposes mentioned in subsection (2) above.

(5) A power to borrow any sum under this section is subject to the Emit imposed by section 19 below, and the Corporation shall not have power to borrow money except in accordance with this section.

(6) The Corporation shall secure that no publicly-owned company borrows money otherwise than from the Corporation or from another publicly-owned company except with the consent of the Secretary of State and the approval of the Treasury.