Explanatory Note
(This note is not part of the Regulations)
These Regulations make provision as to the terms and conditions which apply to any borrowing or loans made by a Health Board, under section 7(3) or (4) of the Public Appointments and Public Bodies etc (Scotland) Act 2003 (asp 4) (“the Act”), from any endowment held by it.
Regulation 2 specifies the terms and conditions, upon which a Health Board may, under section 7(3) of the Act, borrow from any endowment held by it. Regulation 2(a) provides that the total amount which a Health Board may borrow under that section cannot exceed £100,000 in any period of 12 months. Regulation 2(b) provides that the amount borrowed may only be for purposes consistent with the purposes of the endowment from which the borrowing is made. Regulation 2(c) makes provision for the payment of interest to the endowment. Regulation 2(d) makes provision for repayment within a maximum period of 18 months and regulation 2(e) provides that a Health Board must inform the Scottish Ministers whether or nor the borrowing was repaid by the due date.
Regulation 3 specifies the terms and conditions, upon which a Health Board (“the lender”) may, under section 7(4) of the Act, make loans to another Health Board (“the borrower”) from any endowment held by the lender. Regulation 3(a) provides that the loan may only be made for purposes consistent with the purposes of the endowment from which the loan is made. Regulation 3(b) makes provision for the payment of interest to the endowment. Regulation 3(c) makes provision for repayment within a maximum period of 18 months and regulation 3(d) provides that the lender must inform the Scottish Ministers whether or nor the loan was repaid by the due date.
Regulation 4 revokes the National Health Service (Borrowing and Loans from Endowments) (Scotland) Regulations 2004 S.S.I. 2004/16).