Aircraft and Shipbuilding Industries Act 1977 (repealed)

11 Borrowing powers of the Corporations and their wholly owned subsidiaries. U.K.

(1) Subject to subsections . . . F1 (7) below, each Corporation may borrow money in accordance with the provisions of subsections (2), (3) and (4) below.

(2) Each Corporation may borrow temporarily, by way of overdraft or otherwise,—

(a) in sterling from the Secretary of State, or

(b) with the consent of the Secretary of State and the approval of the Treasury or in accordance with any general authority given by the Secretary of State with the approval of the Treasury, in sterling or a currency other than sterling from a person other than the Secretary of State,

such sums as may be required for meeting the obligations and discharging the functions of the Corporation or any of its wholly owned subsidiaries.

(3) Each Corporation may borrow, otherwise than by way of temporary loan,—

(a) in sterling from the Secretary of State, or

(b) with the consent of the Secretary of State and the approval of the Treasury, in sterling from the Commission of the European Communities or the European Investment Bank or in any currency other than sterling from a person other than the Secretary of State,

such sums as may be required by the Corporation or any of its wholly owned subsidiaries for capital purposes or for fulfilling any guarantee entered into by it.

(4) Each Corporation may borrow from any of its wholly owned subsidiaries, without any consent, approval or other authority.

(5) It shall be the duty of each Corporation to secure that none of its wholly owned subsidiaries borrows otherwise than from the Corporation or from another of its wholly owned subsidiaries except with the consent of the Secretary of State and the approval of the Treasury.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2

(7) The aggregate of—

(a) the amounts for the time being outstanding, otherwise than by way of interest, in respect of money borrowed by British Shipbuilders and each of its wholly owned subsidiaries, other than money borrowed on excluded loans, and

(b) the public dividend capital received by British Shipbuilders,

shall not exceed [F3 [F4 £1,550 million]; but the Secretary of State may, with the consent of the Treasury, by order made by statutory instrument increase or further increase that limit by any sum, not exceeding [F5 £150 million], specified in the order, but not so as to make the limit exceed [F6 £1,800 million].]

(8) No part of the commencing capital of the Corporations specified under section 15(1) below shall be taken into account under subsection . . . F7 (7) above.

(9) A loan is an excluded loan for the purposes of subsections . . . F8 (7) above if—

(a) it consists of money borrowed—

(i) by a Corporation from one of its wholly owned subsidiaries, or

(ii) by one of a Corporation’s wholly owned subsidiaries from another such subsidiary or from the Corporation; or

(b) it is a loan under—

(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8

(iii) section 7 or section 8 of the M1 Industry Act 1972 (assistance for industry), or

(iv) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8

(c) it is a loan guaranteed under section 10 of the M2 Industry Act 1972 (construction credits for ships); or

(d) the purpose of the loan is to pay off the whole or any part of the commencing debt (within the meaning of section 15 below) of either Corporation; or

(e) the purpose of the loan is to pay off a previous loan which was itself an excluded loan by virtue of paragraph (d) above or this paragraph.

(10) The power to make an order under . . . F9 subsection (7) above includes power to vary or revoke any order previously made in the exercise of that power; and no such order shall be made unless a draft of it has been laid before and approved by the Commons House of Parliament.

Textual Amendments

F1 Words repealed by British Aerospace Act 1980 (c. 26, SIF 64), s. 15(2), Sch. 3

F2 S. 11(6) repealed by British Aerospace Act 1980 (c. 26, SIF 64), s. 15(2), Sch. 3

F3 Words substituted by virtue of British Shipbuilders (Borrowing Powers) Act 1983 (c. 58, SIF 64), s. 1(1)

F4 Words substituted by virtue of British Shipbuilders (Borrowing Powers) Act 1987 (c. 52, SIF 64), s. 1(1)(a)

F5 Words substituted by virtue of British Shipbuilders (Borrowing Powers) Act 1987 (c. 52, SIF 64), s. 1(1)(b)

F6 Words substituted by virtue of British Shipbuilders (Borrowing Powers) Act 1987 (c. 52, SIF 64), s. 1(1)(c)

F7 Words repealed by British Aerospace Act 1980 (c. 26, SIF 64), Sch. 3

F8 S. 11(9): words and (b)(i)(ii) and (iv) repealed by British Aerospace Act 1980 (c. 26, SIF 64), s. 15(2), Sch. 3

F9 Words repealed by British Aerospace Act 1980 (c. 26, SIF 64), s. 15(2), Sch. 3

Marginal Citations

M1 1972 c. 63.

M2 1972 c. 63.