Explanatory Note
(This note is not part of the Order)
Section 177 of the Education Reform Act 1988 provides that, on the abolition of the Inner London Education Authority (ILEA) on 1st April 1990, the rights and liabilities of the ILEA in respect of money borrowed by the ILEA, including money borrowed by any other authority whose rights and liabilities in respect of that money have been transferred to the ILEA, shall vest in the London Residuary Body (LRB) and that those liabilities shall be charged on the revenues of the LRB. Section 177 goes on to provide that each inner London council shall, on the abolition date, be deemed to have borrowed from the LRB a sum specified or determined in accordance with an order made by the Secretary of State so as to enable the LRB to discharge those liabilities.
This order prescribes the method by which the sums which each inner London council is to be deemed to have borrowed from the LRB are to be determined (article 3), and the terms as to repayment and the payment of interest (articles 4 and 5).
Provision is made for administration (article 6) and early repayment (article 7).