[F1(1)Where a local authority are satisfied that it would be for the benefit or improvement of their area, they may, subject to the provisions of this section, advance money to any person for the purpose of enabling him either—
(a)to acquire land; or
(b)to erect any building or carry out any work on land.]
(2)An advance made under this section, together with interest thereon, shall be secured over the land in respect of which the advance is made.
[F2(3)The amount of the principal of an advance shall not exceed nine-tenths of—
(a)where the advance is made under subsection (1)(a) above, the value of the land; or
(b)where the advance is made under subsection (1)(b) above, the value which it is estimated will be the value of the land on the completion of the building, or as the case may be works,
in respect of which the advance is made.]
(4)An advance made under this section shall carry interest at a rate not less than one quarter per cent. greater than the . . . F3 rate fixed by the Treasury . . . F3 in respect of loans to local authorities made on the date on which the terms of the advance are settled and for the same period as the advance, or at such other rate as the Secretary of State may, on the application of the local authority, fix.
(5)An advance made under this section shall be repayable within a period not exceeding 30 years and either by instalments of principal or by an annuity of principal and interest combined.
[F4(6)The security for an advance made under this section shall be taken at the time of making or, in the case of an agreement to sell or let the land, at the time of the conveyance or of the lease.]
Textual Amendments
F1S. 7(1) substituted by Local Government and Planning (Scotland) Act 1982 (c. 43, SIF 81:2), s. 49(a)
F2S. 7(3) substituted by Local Government and Planning (Scotland) Act 1982 (c. 43, SIF 81:2), s. 49(b)
F3Words repealed by National Loans Act 1968 (c. 13), Sch. 6 Pt. II
F4S. 7(6) substituted (28.11.2004) by Abolition of Feudal Tenure etc. (Scotland) Act 2000 (asp 5), ss. 71, 77(2), sch. 12 para. 26 (with ss. 58, 62, 75); S.S.I. 2003/456, art. 2
Modifications etc. (not altering text)
C1S. 7 restricted by Local Government (Scotland) Act 1973 (c. 65, SIF 81:2),s. 154A(5) (as inserted by Local Government and Planning (Scotland) Act 1982 (c. 43, SIF 81:2), s. 7)
C2S. 7 excluded (retrospectively) by Local Authorities (Expenditure Powers) Act 1983 (c. 52, SIF 81:1, 2), s. 1(2)(b)(5)
C3S. 7 restricted (30.10.1995 for specified purposes and otherwise 1.4.1996) by 1973 c. 65, s. 171C (as inserted by 1994 c. 39, s. 171; S.I. 1995/2866, arts. 2(f), 3(a))
C4S. 7(4) amended by National Loans Act 1968 (c. 13), s. 6
Textual Amendments
F5Ss. 8–11, Sch. repealed by Local Government (Scotland) Act 1975 (c. 30), Sch. 7
Textual Amendments
F6S. 12 repealed by Local Government (Scotland) Act 1975 (c. 30), s. 39(2), Sch. 7