C1C3PART 1FINANCIAL ADMINISTRATION

Annotations:
Modifications etc. (not altering text)

Credit arrangements

I1I2C217“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.