Part 1

Functions of OFCOM

Guarantees

Secretary of State guarantees for OFCOM borrowing
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1
The Secretary of State may guarantee—
a
the repayment of the principal of any borrowing by OFCOM;
b
the payment of interest on any such borrowing; and
c
the discharge of other financial obligations incurred by OFCOM in connection with any such borrowing.
2
The power of the Secretary of State to give a guarantee under this section is a power (subject to subsection (3)) to give it in such manner and on such conditions as he thinks fit.
3
The Secretary of State must not give a guarantee under this section if the aggregate of—
a
the amounts that he may be required to pay for fulfilling that guarantee, and
b
the amounts that he may be required to pay for fulfilling other guarantees previously given under this section and still in force,
exceeds £5 million.
4
The Secretary of State may by order substitute another amount for the amount for the time being specified in subsection (3).
5
No order is to be made containing provision authorised by subsection (4) unless a draft of the order has been laid before Parliament and approved by a resolution of the House of Commons.
6
Immediately after a guarantee is given under this section, the Secretary of State must lay a statement of the guarantee before each House of Parliament.
7
Where any sum is paid by the Secretary of State under a guarantee given under this section, he must lay a statement relating to that sum before each House of Parliament as soon as practicable after the end of each of the financial years—
a
beginning with the one in which the sum is paid; and
b
ending with the one in which OFCOM’s liabilities under subsection (8) in respect of that sum are finally discharged.
8
If sums are paid by the Secretary of State in fulfilment of a guarantee given under this section OFCOM must pay him—
a
such amounts in or towards the repayment to him of those sums as he may direct; and
b
interest, at such rates as he may determine, on amounts outstanding under this subsection.
9
Payments to the Secretary of State under subsection (8) must be made at such times and in such manner as he may determine.