The Local Authorities (Borrowing) Regulations 1990

Issue of loan instruments

4.—(1) This regulation applies with respect to the issue of a loan instrument by a local authority unless—

(a) the instrument is to be issued in respect of a loan or the provision of funds and the loan or funds comprise an investment which has been or is to be admitted to the Official List of the Stock Exchange;

(b) the person who is to make the loan or provide the funds in question (referred to in this regulation as “the lender”) is a person—

(i) carrying on a business consisting wholly or mainly of lending money; or

(ii) if the amount of the loan or funds in question is not less than £30,000, carrying on any business in the course of which he lends money or makes deposits; or

(c) the lender may require the local authority to make all payments which fall to be made by the authority under the instrument—

(i) without notice;

(ii) at less than twelve months notice; or

(iii) within twelve months of the date of issue of the instrument.

(2) Where this regulation applies, a loan instrument shall be issued by a local authority only where a form of application has been received by the authority.

(3) The form of application shall—

(a) comply with the Schedule to these Regulations as respects the matters to be stated (or not to be stated) in the form and the manner in which matters are stated; and

(b) be signed by or on behalf of the lender.

(4) In this regulation, “deposit” has the same meaning as in the Banking Act 1987(1).

(1)

1987 c. 22.