4 Restrictions on powers of development corporation.S
(1)A development corporation shall not have power to borrow money except [F1in accordance with sections 37 and 37A of] this Act.
(2)Without prejudice to any provision of this Act requiring the consent of the Secretary of State to be obtained for anything to be done by a development corporation, the Secretary of State may give directions to any such corporation for restricting the exercise by them of any of their powers under this Act or for requiring them to exercise those powers in any manner specified in the directions.
(3)Before giving any directions to a development corporation under subsection (2) above the Secretary of State shall consult with the chairman of the corporation, or, if the chairman is not available, with the deputy chairman, unless he is satisfied that , on account of urgency, such consultation is impracticable.
(4)A transaction between a person and a development corporation acting in purported exercise of their powers under this Act shall not be void by reason only that it was carried out in contravention of a direction given by the Secretary of State under subsection (2) above unless that person had actual notice of that direction.
(5)Without prejudice to section 3(4) of this Act, nothing in this Act shall be construed as authorising a development corporation to carry on any undertaking for the supply of water, electricity or gas, or any railway, light railway, tramway or trolley vehicle undertaking except under the authority of an enactment not contained in this Act specifically authorising them to do so or, in the case of a trolley vehicle undertaking, under the authority of such an enactment or of an order under section 32 of this Act.
Textual Amendments
F1Words substituted by Statutory Corporations (Financial Provisions) Act 1974 (c. 8, SIF 99:6), Sch. 3 para. 5