The Local Authorities (Capital Finance) (Amendment) (Wales) Regulations 2000
Citation, commencement, application and interpretation1.
(1)
These Regulations may be cited as the Local Authorities (Capital Finance) (Amendment) (Wales) Regulations 2000 and shall come into force on 1st April 2000.
(2)
These Regulations apply to Wales only.
(3)
Amendment2.
“40.
A credit arrangement which is a private finance transaction shall be excluded from section 49(2) and the initial cost and the cost at any time of the arrangement shall be nil.”.
These Regulations are made under Part IV of the Local Government and Housing Act 1989 (“the Act”) and amend the Local Authorities (Capital Finance) Regulations 1997 (“the 1997 Regulations”). The 1997 Regulations are concerned with the capital finance system for local authorities which has been in operation since 1st April 1990.
Under Part IV of the Act local authorities are required to have an amount of credit cover available when they enter into or vary a credit arrangement unless the credit arrangement is excluded from the requirement by regulations. These Regulations substitute a new Regulation 40 for Regulations 40, 41 and 42 of the 1997 Regulations so that a local authority entering into a credit arrangement which is a private finance transaction no longer needs to provide credit cover.