Local Government, Planning and Land Act 1980

1 (1) The Authority may borrow temporarily, by way of overdraft or otherwise, such sums as it may require for meeting its obligations and discharging its functions—

(a) in sterling from the Secretary of State, or

(b) with the consent of the Secretary of State, or in accordance with any general authority given by the Secretary of State, in sterling from a person other than the Secretary of State.

(2) The Authority may borrow otherwise than by way of temporary loan such sums in sterling as the Authority may require from the Secretary of State.

(3) The aggregate amount outstanding by way of the principal of any money borrowed by the Authority under this paragraph shall not exceed £20 million.

(4) The Authority shall not borrow money otherwise than under this paragraph.

(5) The Secretary of State may lend to the Authority any sums which the Authority has power to borrow from him, and any such loan shall be repaid to the Secretary of State at such times and by such methods, and interest on the loan shall be paid to him at such rates and at such times, as he may from time to time determine.

(6) The Treasury may issue out of the National Loans Fund to the Secretary of State such sums as are necessary to enable him to make loans in pursuance of this paragraph, and any sums received by the Secretary of State in pursuance of sub-paragraph (5) above shall be paid into that Fund.

(7) References in this paragraph to the Secretary of State are references to him acting with the approval of the Treasury.