Explanatory Note
(This note is not part of the Regulations)
These Regulations are concerned with the new borrowing powers of local authorities conferred by Part IV of the Local Government and Housing Act 1989. The powers will be exercisable from 1st April 1990 as part of the new capital finance system for local authorities.
Section 43 of that Act provides that one of the ways in which local authorities will be able to borrow is by means of loan instruments. These Regulations make various provision as to the terms of loan instruments, the manner of their issue, transfer and redemption, and the way in which payments or repayments are to be made to the holder of an instrument. Regulation 7 restricts the issue of loan instruments which are transferable by delivery.
Section 46 of the Act requires local authorities to maintain a register of loans. These Regulations make provision as to the keeping of a register, and as to the particulars which are required to be registered.