2(1)Subject to sub-paragraph (2), a local authority may borrow money—E+W
(a)for any purpose relevant to its functions under any enactment, or
(b)for the purposes of the prudent management of its financial affairs.
(2)A local authority may only borrow money (whether under sub-paragraph (1) or otherwise)—
(a)for a purpose or class of purpose approved for the purposes of this provision by the appropriate person, and
(b)in accordance with any conditions subject to which the approval is given.
(3)Sub-paragraph (2) does not apply—
(a)to borrowing by way of temporary loan or overdraft from a bank or otherwise of sums which a local authority may temporarily require—
(i)for the purpose of meeting expenses pending the receipt of revenues receivable by it in respect of the period of account in which the expenses are chargeable, or
(ii)for the purpose of meeting expenses intended to be met by means of borrowing in accordance with approval under sub-paragraph (2), or
(b)to borrowing for the purpose of repaying money borrowed in accordance with approval under sub-paragraph (2), where the new borrowing takes place during the fixed period relating to the existing borrowing.
(4)A local authority’s functions under this paragraph shall be discharged only by the authority.
Commencement Information
I1Sch. 1 para. 2 in force at 27.11.2003 for specified purposes for W. by S.I. 2003/3034, art. 2, Sch. 1 Pt. I
I2Sch. 1 para. 2 in force at 1.4.2004 for E. by S.I. 2003/2938, art. 7(b) (with art. 8, Sch.)