Part 13Powers to amend trusts and use capital

F1Power to borrow from permanent endowment

284CCalculation of the “maximum estimated capital appreciation”

(1)

The “maximum estimated capital appreciation” for the purposes of section 284A(5) is given by the formula—

R×I

where—

R is the amount of borrowing being repaid, and

I is the percentage increase in the relevant index between the month in which the amount was borrowed and the month preceding the month in which the repayment is made (or if there is no increase is nil).

(2)

The “relevant index” is whichever of the following is selected by the charity trustees from time to time—

(a)

the retail prices index;

(b)

the consumer prices index;

(c)

any similar general index of prices published by the Statistics Board.

(3)

In this section—

“consumer prices index” means the general index for consumer prices published by the Statistics Board;

“retail prices index” means the general index of retail prices (for all items) published by the Statistics Board.