7Application of ss. 1-6 to persons, other than trustees, having trustee investment powers
1
Where any persons, not being trustees, have a statutory power of making investments which is or includes power—
a
to make the like investments as are authorised by section one of the Trustee Act, 1925, or section ten of the Trusts (Scotland) Act, 1921, or
b
to make the like investments as trustees are for the time being by law authorised to make,
however the power is expressed, the foregoing provisions of this Act shall with the necessary modifications apply in relation to them as if they were trustees:
Provided that property belonging to a Consolidated Loans Fund or any other fund applicable wholly or partly for the redemption of debt shall not by virtue of the foregoing provisions of this Act be invested or held invested in any manner specified in paragraph 6 of Part II of the First Schedule to this Act or in wider-range investments.
2
Where, in the exercise of powers conferred by any enactment, an authority to which paragraph 9 of Part II of the First Schedule to this Act applies uses money belonging to any fund for a purpose for which the authority has power to borrow, the foregoing provisions of this Act, as applied by the foregoing subsection, shall apply as if there were comprised in the fund (in addition to the actual content .thereof) property, being narrower-range investments, having a value equal to so much of the said money as for the time being has not been repaid to the fund, and accordingly any repayment of such money to the fund shall not be treated for the said purposes as the accrual of property to the fund:
Provided that nothing in this subsection shall be taken to require compliance with any of the provisions of section six of this Act in relation to the exercise of such powers as aforesaid.
3
In this section " Consolidated Loans Fund " means a fund established under section fifty-five of the Local Government Act, 1958, and includes a loans fund established under section two hundred and seventy-five of the Local Government (Scotland) Act, 1947, and " statutory power " means a power conferred by an enactment passed before the passing of this Act or by any instrument made under any such enactment.