Public Libraries and Museums Act 1964

Section 15.

SCHEDULE 2 Management of Funds for Purchase of Exhibits

Payments into fund

1 No payment shall be made into the fund (hereinafter referred to as the " art fund ") unless the payment is authorised or required to be made by the following provisions of this Schedule.

2 (1) There may be paid into the art fund from the county fund or, as the case may be, the general rate fund such sums as the local authority determine, but, except with the consent of the Minister of Housing and Local Government,—

(a) the aggregate of sums so paid in any financial year shall not exceed the product of a rate of one-fifth of a penny in the pound for the administrative area of the authority for that year;

(b) a sum shall not be so paid if the payment thereof would cause the balance of the art fund to exceed the product of a rate of one penny in the pound for that area for that year.

(2) The above references to the product of a rate for an area shall, where there is more than one rating area within the area, be construed as references to the aggregate product of a rate of the amount in question for all rating areas within the area.

(3) The product of a rate of any amount for a rating area shall for the purposes of this paragraph be taken to be the product of a rate of that amount for that area ascertained, in the case of an area other than a county borough, in accordance with rules made for the purposes of section 9(2) of the Rating and Valuation Act 1925, or, in the case of a county borough, in accordance with rules made by the Minister of Housing and Local Government for the purposes of Part I of the Local Government Act 1958.

3 Where any object previously kept for exhibition in a museum or art gallery maintained by the local authority under section 12 of this Act is sold by the authority, and the proceeds of sale are not subject to any trust the terms of which prevent their being used for the purchase of other objects for exhibition either in that museum or gallery or in any other museum or art gallery for the time being so maintained, the proceeds of sale or any part thereof may be paid into the art fund.

Power of investment

4 Until it is required for the purposes of the art fund, money therein may be invested by the local authority in the like investments as trustees are for the time being by law authorised to make, and for this purpose section 7 of the Trustee Investments Act 1961 (which applies the preceding sections of the Act to persons, other than trustees, having trustee investment powers) shall have effect as if this Act had been passed before that Act:

Provided that for the purpose of the making of investments by the authority under this paragraph, paragraph 9 of Part II of Schedule 1 to that Act (which specifies local authorities whose securities are to be authorised investments'' shall not apply to the authority or to a joint board comprising the authority and established under section 5 of this Act.

5 Income arising from investments made under paragraph 4 above shall be carried to the county fund or the general rate fund, as the case may be, and an equivalent sum shall be paid from that fund into the art fund.

Application of foregoing provisions to joint boards

6 Where the local authority is a joint board established under section 5 of this Act—

(a) references in this Schedule to the county fund or general rate fund shall be construed as references to the general revenues of the joint board, and references to the administrative area of the local authority shall be construed as references to the library area of the joint board;

(b) the proviso to paragraph 4 above shall be treated as disapplying paragraph 9 of Part II of Schedule 1 to the Trustee Investments Act 1961 in relation to the authorities constituting the joint board as well as in relation to the board itself.