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.