PART 1FINANCIAL ADMINISTRATION
Credit arrangements
18Control of credit arrangements
1
A council may not enter into, or vary, a credit arrangement if doing so would result in a breach of—
a
the limit determined by it under section 13, or
b
any limit applicable to it under section 14.
2
In applying those limits for the purposes of subsection (1)—
a
entry into a credit arrangement shall be treated as the borrowing of an amount of money equal to the cost of the arrangement, and
b
variation of a credit arrangement shall be treated as the borrowing of an amount of money equal to the cost of the variation.
3
Regulations may make provision about the calculation for the purposes of subsection (2) of the cost of a credit arrangement or a variation and, in particular, about the treatment of options.