The Education (London Residuary Body) (Transfer of Loans) Order 1992

Statutory Instruments

1992 No. 501

EDUCATION, ENGLAND AND WALES

The Education (London Residuary Body) (Transfer of Loans) Order 1992

Made

4th March 1992

Laid before Parliament

10th March 1992

Coming into force

1st April 1992

Whereas the London Residuary Body, acting pursuant to section 187(2) of the Education Reform Act 1988(1), has submitted proposals to the Secretary of State for the transfer to the councils of inner London boroughs of certain of its rights and liabilities;

And whereas the Secretary of State has decided to give effect to those proposals with modifications;

Now, therefore, the Secretary of State, in exercise of the powers conferred on him by sections 177(2) and (3), 187(5) and (6), 231(2) and (3) and 232(5) of that Act, and of all other powers enabling him in that behalf, hereby makes the following Order:

Citation, commencement and interpretation

1.—(1) This Order may be cited as the Education (London Residuary Body) (Transfer of Loans) Order 1992 and shall come into force on 1st April 1992.

(2) In this Order—

“the appropriate percentage” means, in relation to a council listed in column (1) of Schedule 1 to this Order, the percentage specified opposite thereto in whichever of column (2), (3) or (4) of that Schedule is appropriate to the loan in question; and

“the LRB” means the London Residuary Body.

Transfer of loans

2.—(1) On 1st April 1992 part of the liability of the LRB to the Public Works Loan Board in respect of the payment of interest and the repayment of principal outstanding immediately before that date attributable to the loans listed in Schedule 2 to this Order shall transfer to and fall to be discharged by the councils listed in Schedule 1 to this Order in the manner described in paragraphs (2) to (4) below.

(2) Each council shall be liable for the repayment of the appropriate percentage of principal outstanding in relation to each loan.

(3) Each council shall discharge that part of the liability apportioned to it at the time and in the manner applicable to the loan in question.

(4) Each council shall pay to the Public Works Loan Board interest on that part of the liability which falls to be discharged by it at the rate and time and in the manner applicable to the loan in question.

3.  The rights of the LRB in respect of the loans referred to in article 2(1) above shall on 1st April 1992 vest jointly and severally in the LRB and in the councils there referred to.

Extinguishment of existing rights and liabilities, revocation and saving

4.—(1) Subject to paragraph (2) below, the rights and liabilities created by section 177(2) and (3) of the Education Reform Act 1988 and the Education (Inner London Education Authority) (Repayment of Loans) Order 1990(2) are extinguished and that Order is hereby revoked.

(2) Paragraph (1) above shall not have effect in relation to rights and liabilities—

(a) which accrued before 1st April 1992; and

(b) in respect of payments which fall to be made on 30th September 1992 in accordance with article 6(3) of the said Order.

Kenneth Clarke

Secretary of State for Education and Science

4th March 1992

Articles 1(2) and 2(1)

SCHEDULE 1 TRANSFER OF LOANS

Inner London Borough Councils		Appropriate Percentage
(1)	(2)	(3)	(4)
	Loans 1—28	Loan 29	Loans 30—31
Camden	6.3617224258	6.6689728926	7.6114171274
Greenwich	7.6089548446	7.9764425739	9.1036554803
Hackney	6.4203172338	6.7303976390	7.6815222806
Hammersmith and Fulham	5.8092570571	6.0898252466	6.9504256399
Islington	6.1189724897	6.4144989256	7.3209814722
Kensington and Chelsea	4.0514127007	4.2470827347	4.8472709050
Lambeth	8.4543942765	8.8627139759	10.1151727615
Lewisham	8.3874287761	8.7925142600	10.0350525798
Southwark	8.0944547128	8.4853905040	9.6845267861
Tower Hamlets	5.5330243748	5.8002514256	6.6199298985
Wandsworth	10.1201610670	10.6089318754	12.1081622430
Westminster	6.6212137350	6.9409967867	7.9218828257

Article 2(1)

SCHEDULE 2 PUBLIC WORKS LOAN BOARD LOANS

ILEA Loan No.	Loan No.	Outstanding balance (£) as at 31st March 1992	Rate % per annum	Interest payable on stated day each month	Final payment due on
1	460158	2,000,000.00	8.750	2 May and November	2 May	2001
2	460315	2,000,000.00	8.750	16 May and November	16 May	1994
3	460483	2,000,000.00	8.750	6 June and December	6 June	1994
4	460684	2,000,000.00	9.125	17 January and July	17 July	1992
5	460844	2,000,000.00	9.375	10 March and September	10 September	1993
7	461905	2,000,000.00	8.625	30 March and September	30 March	1993
11	462384	40,000,000.00	9.000	15 April and October	15 April	1992
12	462385	30,000,000.00	9.125	15 April and October	15 April	1994
13	462386	20,000,000.00	9.250	15 April and October	15 April	1996
14	462387	20,000,000.00	9.250	15 April and October	15 April	1998
15	462388	20,000,000.00	9.250	15 April and October	15 April	2000
16	462389	20,000,000.00	9.250	15 April and October	15 April	2002
17	462390	5,000,000.00	9.250	15 April and October	15 April	2007
18	463142	2,000,000.00	8.625	12 June and December	12 June	1992
19	463572	3,000,000.00	9.500	5 May and November	5 November	2012
20	463896	7,000,000.00	9.250	1 February and August	1 February	1993
22	464212	1,500,000.00	9.125	25 March and September	25 March	1994
23	464943	5,000,000.00	9.750	30 June and December	30 June	2003
24	464944	10,000,000.00	9.750	30 June and December	30 June	1992
25	464945	5,000,000.00	9.750	30 June and December	30 June	1993
26	465320	4,400,000.00	9.500	30 March and September	30 March	2014
27	466176	12,000,000.00	9.000	11 February and August	11 August	2014
28	466486	7,000,000.00	9.250	30 March and September	30 September	2014
29	467678	25,000,000.00	9.750	20 April and October	20 April	2015
30	468294	4,300,000.00	11.500	11 March and September	11 September	2015
31	468434	2,695,460.37	11.500	11 March and September	11 September	2015
		255,895,460.37

Explanatory Note

(This note is not part of the Order)

This Order transfers to specified inner London borough councils part of the London Residuary Body’s liability to the Public Works Loan Board in respect of specified loans.

The Education (Inner London Education Authority) (Repayment of Loans) Order 1990, taken with section 177 of the Education Reform Act 1988, had provided that each inner London council (as therein defined) was deemed to have borrowed from the London Residuary Body (“the LRB”) a sum determined in accordance with that Order. Payments from the inner London councils were used by the LRB to discharge its liabilities to the Public Works Loans Board inherited from the Inner London Education Authority. Now that this Order provides for the transfer of certain of the LRB’s outstanding liabilities to the Board to the inner London borough councils that Order is no longer required and is revoked.

(1)

1988 c. 40.

(2)

S.I. 1990/775.