PART 3

FINANCES

Application of finances
7
The Council shall apply the harbour revenue in the manner following and not otherwise—
a
first in payment of the working and establishment expenses and cost of maintenance of the harbour;
b
secondly in payment of the interest on any moneys borrowed by the Council for the harbour under any statutory borrowing power;
c
thirdly in payment of all other expenses properly chargeable to harbour revenue; and
d
fourthly to an account established as a reserve fund for the harbour.

Reserve fund
8
1
The Council shall establish and maintain a reserve fund.
2
The Council shall carry to a reserve fund such part of the harbour revenue as shall be available for the purpose in accordance with article 7(d).
3
Any reserve fund established or maintained under this article shall from time to time be applied by the Council in its discretion—
a
in or towards meeting any deficiency on the harbour revenue account in any year; or
b
to meet any extraordinary claim or demand in respect of the harbour undertaking; or
c
in or towards payment of the cost of renewing, improving, extending or replacing any part of the works forming part of the harbour undertaking or any vessels, plant or equipment of the Council connected to the harbour undertaking; or
d
for improving the operational area and the navigation of the harbour and the approaches to the harbour; or
e
for any other lawful purpose sanctioned by the Council and connected with the harbour undertaking.

Borrowing powers
9
1
Notwithstanding anything contained in any enactment, the Council may from time to time, for the general purposes of the harbour undertaking, borrow upon the security of all or any of the harbour revenue and property and by any method or methods which it sees fit such sums of money as it considers necessary.
2
Moneys borrowed under paragraph (1) may be applied only to purposes to which capital money is properly applicable.
3
Without prejudice to paragraph (2) purposes to which capital money is properly applicable shall be deemed to include—
a
any major works of repair or maintenance of any part of the works forming part of the harbour undertaking;
b
the payment of any interest falling due within the five years immediately following the date of the borrowing of any sum of money borrowed by the Council under this article;
c
the repayment within 12 months from the date of borrowing of any sum for the time being outstanding by way of principle on any amount previously borrowed; and
d
a payment relating to pensions paid or to be paid to past or present employees of the Council whose employment related to the harbour undertaking or to the family or dependants of such persons.