PART 1FINANCIAL ADMINISTRATION
Credit arrangements
I117“Credit arrangements”
1
For the purposes of this Part, a council shall be taken to have entered into a credit arrangement where—
a
it enters into a transaction which gives rise to a liability on its part, and
b
the liability is a qualifying liability.
2
A transaction entered into by a council is to be taken for the purposes of subsection (1) as giving rise to a liability on the part of the council if—
a
it falls in accordance with proper practices to be treated for the purposes of the council's accounts as giving rise to such a liability, or
b
it falls in accordance with regulations to be treated as falling within paragraph (a).
3
The reference in subsection (1)(b) to a qualifying liability is to any liability other than—
a
a liability to repay money,
b
a liability in respect of which the date for performance is less than 12 months after the date on which the transaction giving rise to the liability is entered into, and
c
a prescribed liability.