Development of Tourism Act 1969

13 Power to make loans

(1) Subject to the provisions of this Act and to any directions under section 19 thereof, the appropriate Tourist Board may, if it thinks fit, make a loan or loans to any person for assisting him—

(a) to provide a new hotel in Great Britain ; or

(b) to extend or alter an existing hotel in Great Britain or to provide and install fixed equipment in any such hotel,

where it appears to the Board that the total eligible expenditure incurred or to be incurred by him in carrying out the project in question exceeds, in a case within paragraph (a) of this subsection, £20,000 or, in a case within paragraph (b) of this subsection, £10,000.

(2) No loan shall be made under this section unless the appropriate Tourist Board is satisfied that the hotel in question complies or will comply, on the completion of the project or as from its opening thereafter, with the requirements specified in section 7(2) of this Act.

(3) Subject to subsection (4) of this section, the total amount lent under this section in respect of any project shall not exceed—

(a) the following percentage of the eligible expenditure incurred or to be incurred on the project, that is to say—

(i) in the case of a project within subsection (1)(a) of this section, thirty per cent.;

(ii) in any other case, fifty per cent.; or

(b) £500,000,

whichever is the less.

(4) If the relevant Minister is satisfied by the appropriate Tourist Board that a particular project within subsection (1)(a) of this section will not be carried out unless the total amount lent exceeds the amount permitted by subsection (3) of this section, he may, with the consent of the Treasury, authorise the Board to make loans in respect of that project to such total amount in excess of the amount so permitted as may be specified by him, but the total amount so specified shall not exceed what would be permitted by the said subsection (3) if the percentage mentioned in paragraph (a)(i) thereof were forty per cent.

(5) Subject to any directions under section 19 of this Act, a loan under this section shall be made on such terms and conditions as the Tourist Board concerned may determine, but the period within which any such loan is to be repaid shall not exceed twenty years in a case within subsection (1)(a) of this section or fifteen years in any other case.

(6) In this section " eligible expenditure " means approved capital expenditure on constructional work and on the purchase and installation of fixed equipment.