(1)Any sum paid by the owner of land to a street works authority under section 219 above, in so far as it continues to be held by the authority, carries simple interest at the appropriate rate from the date of payment until such time as the sum or a part of it remaining so held—
(a)falls to be set off under section 222 above against the liability of the owner of the land in respect of the carrying out of street works; or
(b)falls to be refunded in full under the provisions of the advance payments code;
and the interest shall be held by the authority until that time and dealt with under those provisions as if it formed part of the said sum.
This subsection does not apply to any sum in so far as it is repaid under any such agreement as is referred to in section 221(3) above.
(2)For the purposes of the advance payments code interest on any sum held by a street works authority shall be calculated in respect of each financial year during which it accrues at the appropriate rate prevailing at the commencement of that financial year.
(3)In this section “the appropriate rate” means the rate at the material time determined by the Treasury in respect of local loans for periods of 10 years on the security of local rates (being a determination under section 6(2) of the M1National Loans Act 1968, and subject to any relevant direction under the said section 6(2)).
Modifications etc. (not altering text)
C1Ss. 224, 225 modified by Building Act 1984 (c. 55, SIF 15), ss. 48(2)(3), 49(8)
Marginal Citations