The National Health Service (Borrowing and Loans from Endowments) (Scotland) (No. 2) Regulations 2004

Terms and conditions applying to borrowing under section 7(3) of the Act

2.  The terms and conditions upon which a Health Board may, under section 7(3) of the Act, borrow from any endowment held by it are–

(a) that the total amount or amounts borrowed under that section shall not, when aggregated together, exceed £100,000 in any period of 12 months;

(b) that the Health Board can only use the amount borrowed for purposes consistent with the purposes of the endowment from which the borrowing is made;

(c) that the Health Board pays interest on the amount borrowed, quarterly in arrears to the endowment from which the borrowing is made, at the Bank of England base lending rate plus 2% calculated at the date on which the borrowing is made;

(d) that the Health Board repays to the endowment from which the borrowing is made the amount borrowed within a period not exceeding 18 months from the date on which it is made;

(e) that the Health Board shall inform the Scottish Ministers, not later than 28 days after the date on which any amount borrowed is due to be repaid, whether or not the amount borrowed has been repaid on the due date.