Transport Act 1962

19 Borrowing powers of Boards. U.K.

(1) Subject to the limit in subsection (3) of this section, each of the Boards may borrow temporarily, by way of overdraft or otherwise, either from the Minister or, with the consent of the Minister, from any other person, such sums as the Board may require for meeting their obligations or discharging their functions under this Act, but the aggregate of the amounts outstanding in respect of any temporary loans raised by a Board under this subsection shall not exceed such limit as the Minister may for the time being have imposed on that Board for the purposes of this subsection by a direction given to the Board.

(2) Subject to the limit in subsection (3) of this section, each of the Boards may borrow (otherwise than by way of temporary loan) from the Minister [F1 or, with the consent of [F2 the Minister] and the approval of the Treasury, may borrow (otherwise than by way of temporary loan) in a currency other than sterling from any person, or in sterling from the Commission of [F3 the European Union] or from the European Investment Bank] such sums as the Board may require for all or any of the following purposes—

(a) for meeting any expenses properly chargeable to capital, being expenses incurred in connection with the provision or improvement of assets in connection with the business of the Board,

(b) for the provision of working capital,

(c) for acquiring an undertaking or part of an undertaking,

(d) for lending money to, or meeting a guarantee given for the benefit of, any person for the purpose of an undertaking carried on by him, or where that person is a body corporate, an undertaking carried on by a subsidiary of that body corporate,

(e) for subscribing for or acquiring securities of a body corporate, otherwise than by way of investment,

(f) for the payment of interest charged to capital account under subsection (5) of the last foregoing section,

(g) to pay off—

(i) any part of the commencing capital debt of the Board,

(ii) any money borrowed by the Board,

(iii) any liability transferred to the Board from the Commission under or in pursuance of this Act,

(h) for any purpose for which capital moneys are properly applicable (whether or not specified in the foregoing paragraphs).

[F4 (3) In any financial year the net amount of sums borrowed by the British Waterways Board under this section for discharging their functions under this Act or for meeting their obligations in connection with the discharge of their functions shall not exceed the amount specified for that year for the purposes of this subsection in a Budget Act.]

[F5 (3A) In subsection (3)—

(a) “net amount” means the amount of sums borrowed in the financial year less any repayments made during that year (otherwise than by way of interest) in respect of sums borrowed in that year or any other year, and

(b) “Budget Act” has the same meaning as in the Public Finance and Accountability (Scotland) Act 2000.]

(4) A Board shall not have power to borrow money except in accordance with this section.

(5) References in this section to borrowing do not include—

(a) borrowing by a Board from a body corporate which is a subsidiary of that Board; or

(b) the receipt of money by a Board in the course of the carrying on of a savings bank operated by the Board or the use by the Board of money so received, or

(c) the receipt or use by a Board of money of a pension fund established for the purposes of a pension scheme in which employees of the Board or of a subsidiary of the Board participate.

(6) This section shall have effect subject to the following provisions of this Part of this Act relating to the Railways Board and the British Waterways Board.

[F6 (7) This section applies to the British Waterways Board F7 ... subject to the following modifications–

(a) in subsection (1), references to the Minister are to be read as references to the Scottish Ministers;

(b) in subsection (2), the references to the Minister [F8 and the Secretary of State] are to be read as references to the Scottish Ministers, and the approval of the Treasury is not required in connection with the borrowing of any sums for any purpose mentioned in paragraphs (a) to (h); and

F9 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F1 Words inserted by Statutory Corporations (Financial Provisions) Act 1974 (c. 8), Sch. 2 para. 1

F2 Words substituted by virtue of S.I. 1976/1775, art. 2(1) and 1979/571, arts. 2(1), 3(5)

F3 Words in s. 19(2) substituted (22.4.2011) by The Treaty of Lisbon (Changes in Terminology) Order 2011 (S.I. 2011/1043), arts. 3, 4 (with arts. 3(2)(3), 4(2), 6(4)(5))

F4 S. 19(3) substituted (2.7.2012) by The British Waterways Board (Transfer of Functions) Order 2012 (S.I. 2012/1659), art. 1(2), Sch. 2 para. 11(2) (with arts. 4-6)

F5 S. 19(3A) substituted (2.7.2012) by The British Waterways Board (Transfer of Functions) Order 2012 (S.I. 2012/1659), art. 1(2), Sch. 2 para. 11(3) (with arts. 4-6)

F6 S. 19(7) inserted (1.4.2001) by S.I. 2000/3251, arts. 1(2)(b), 2, Sch. 2 para. 2(11) (with transitional provisions and savings in art. 4)

F7 Words in s. 19(7) omitted (2.7.2012) by virtue of The British Waterways Board (Transfer of Functions) Order 2012 (S.I. 2012/1659), art. 1(2), Sch. 2 para. 11(4)(a) (with arts. 4-6)

F8 Words in s. 19(7)(b) inserted (2.7.2012) by The British Waterways Board (Transfer of Functions) Order 2012 (S.I. 2012/1659), art. 1(2), Sch. 2 para. 11(4)(b) (with arts. 4-6)

F9 S. 19(7)(c) omitted (2.7.2012) by virtue of The British Waterways Board (Transfer of Functions) Order 2012 (S.I. 2012/1659), art. 1(2), Sch. 2 para. 11(4)(c) (with arts. 4-6)

Modifications etc. (not altering text)

C1 Ss. 18-21, 24 extended by Transport Act (c. 73), s. 27(1)

C2 Ss. 19-21A: power conferred (6.1.1994) by 1993 c. 43, s. 110(1)(2); S.I. 1993/3237, art. 2(2)