Part 1Capital finance etc and accounts

Chapter 1Capital finance etc

Borrowing

2Control of borrowing

(1)

A local authority may not borrow money if doing so would result in a breach of—

(a)

the limit for the time being determined by or for it under section 3, or

(b)

any limit for the time being applicable to it under section 4 F1, or

F2(c)

any limit for the time being applicable to it under section 12A.

(2)

The Secretary of State may, in relation to specific borrowing by a particular local authority, by direction disapply subsection (1)(b), so far as relating to any limit for the time being applicable under section 4(1).

(3)

A local authority may not, without the consent of the Treasury, borrow otherwise than in sterling.

(4)

This section applies to borrowing under any power for the time being available to a local authority under any enactment, whenever passed.