12.—(1) A local authority must maintain a loans fund.
(2) A loans fund must be administered in accordance with these Regulations, proper accounting practices and prudent financial management.
13.—(1) Subject to paragraph (2), for each financial year a local authority must make loans fund advances in respect of the amount of—
(a)expenditure that the authority has incurred; and
(b)lending that the authority has made,
that it has determined is to be financed by borrowing, as permitted by regulation 2, in that financial year.
(2) A loans fund advance may not be made for any expenditure or lending financed by—
(a)borrowing that relates to treasury management activities; or
(b)a credit arrangement.
[F1(3) Except for an advance to which regulation 14 applies, a local authority must repay a loans fund advance in accordance with proper accounting practices.]
Textual Amendments
F1Reg. 13(3) inserted (1.4.2023) by The Local Authority (Capital Finance and Accounting) (Scotland) (Coronavirus) Amendment Regulations 2021 (S.S.I. 2021/119), regs. 1(3), 6(2) (as amended by S.S.I. 2022/122, regs. 1(1), 4(2))
Commencement Information
[F214.—(1) This regulation applies to any loans fund advance made prior to 1 April 2023.
(2) A local authority may, if it considers it prudent to do so, vary—
(a)the period over which the advance is to be repaid to the loans fund,
(b)the amount of any of the statutory repayments it is due to make to the loans fund in each financial year in that period, or
(c)both (a) and (b).
(3) Paragraph (2)—
(a)applies whether the period or amount referred to in that paragraph was determined under these Regulations or prior to them, but
(b)does not apply to any borrowing for which the consent of the Scottish Ministers was required, whether under regulation 2(2) or otherwise F3....
[F4(4) Subject to paragraph (5), a variation under paragraph (2) must—
(a)not result in the repayment period exceeding the useful life of the asset in relation to which the loans fund advance was made,
(b)not result in the repayment period exceeding 50 years beginning with the date on which the loans fund advance was made, if the loans fund advance does not relate to an asset for which a useful asset life can reasonably be determined,
(c)only be calculated on the balance of the loans fund advance as it applies on the first day of the financial year in which the variation is made, and
(d)never give rise to a nil or negative repayment.
(5) A variation may result in a repayment period exceeding the useful life of an asset, or in the repayment period exceeding 50 years, with the consent of the Scottish Ministers.
(6) For the purposes of paragraphs (4) and (5), the useful life of an asset is to be determined in accordance with proper accounting practices.]]
Textual Amendments
F2Reg. 14 substituted (1.4.2023) by The Local Authority (Capital Finance and Accounting) (Scotland) (Coronavirus) Amendment Regulations 2021 (S.S.I. 2021/119), regs. 1(3), 6(3) (as amended by S.S.I. 2022/122, regs. 1(1), 4(2)(3))
F3Words in reg. 14(3)(b) omitted (1.4.2024) by virtue of The Local Authority (Capital Finance and Accounting) (Scotland) Amendment Regulations 2024 (S.S.I. 2024/90), regs. 1, 2(2)(a)
F4Reg. 14(4)-(6) inserted (1.4.2024) by The Local Authority (Capital Finance and Accounting) (Scotland) Amendment Regulations 2024 (S.S.I. 2024/90), regs. 1, 2(2)(b)
F514A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F5Reg. 14A revoked (1.4.2023) by The Local Authority (Capital Finance and Accounting) (Scotland) (Coronavirus) Amendment Regulations 2021 (S.S.I. 2021/119), regs. 1(3), 6(4) (as amended by S.S.I. 2022/122, regs. 1(3), 4(2)(4))