Industry Act 1975

8 Financial limits

(1) The aggregate amount outstanding, otherwise than by way of interest, in respect of—

(a) the general external borrowing of the Board and their wholly owned subsidiaries;

(b) sums issued by the Treasury in fulfilment of guarantees under paragraph 4 of Schedule 2 below and riot repaid to the Treasury;

(c) sums paid to the Board under paragraph 5(1) of that Schedule;

(d) loans guaranteed by the Board otherwise than under section 3 above;

shall not exceed the limit specified in subsection (2) below.

(2) The said limit shall be £700 million, but the Secretary of State may by order made with the consent of the Treasury raise the limit to not more than £1,000 million.

(3) Such an order shall not be made unless a draft of it has been approved by resolution of the House of Commons.

(4) In subsection (1) above "general external borrowing" means—

(a) in relation to the Board, sums borrowed by them other than—

(i) sums borrowed from a body corporate which is one of the Board's wholly owned subsidiaries at the time of the loan ;

(ii) any sums mentioned in subsection (1)(b) above; or

(iii) sums borrowed by the Board for the purpose of giving assistance under section 3 above ; and

(b) in relation to a wholly owned subsidiary of the Board, sums borrowed by it when it was such a subsidiary other than sums borrowed from the Board or from another wholly owned subsidiary ;

but does not include any debt assumed by the Board under paragraph 6(1) of Schedule 2 below.