Local Government Act 1974

12 In paragraph 7 of Schedule 13 to that Act, in sub-paragraph (1), after the words " subject to " there shall be inserted the words " sub-paragraph (3) and " and at the end of that paragraph there shall be added the following sub-paragraph:—

“(3) In any case where—

(a) a local authority make an advance to any other person (including another authority) and the expenditure incurred in making the advance is defrayed by borrowing, and

(b) the terms of that advance are such that repayment is to be made otherwise than by equal instalments of principal and interest combined, and

(c) apart from this sub-paragraph, the local authority would have no power, with respect to the expenditure referred to in paragraph (a) above, to vary the sums which would otherwise be debited under sub-paragraph (1) above or to suspend their obligation under that sub-paragraph,

the local authority may, under sub-paragraph (1) above, debit the account from which the expenditure referred to in paragraph (a) above would otherwise fall to be defrayed with sums of different amounts (whether or not including instalments of principal) in respect of different years in order to take account of the terms on which their advance falls to be repaid.”