Crown Agents Act 1979

17 Crown Agents' commencing capital debt

(1) The Crown Agents shall on the appointed day assume a debt due to the Minister (in this Act referred to as their " commencing capital debt") in respect of the property and rights transferred to them by virtue of section 2.

(2) The amount of the Crown Agents' commencing capital debt shall be such as the Minister may, with the approval of the Treasury, specify by notice in writing given to the Crown Agents ; and the Treasury shall be deemed to have issued to the Minister out of the National Loans Fund on the appointed day a sum equal to that amount.

(3) The arrangements for repaying the Crown Agents' commencing capital debt, and, subject to the following provisions of this section, the other terms of that debt shall be such as the Minister may from time to time, after consultation with the Crown Agents, determine.

(4) For any part of the initial period interest shall be payable on the Crown Agents' commencing capital debt or any portion of that debt only if the Minister so determines; and for any part of that period for which interest on the debt or any portion thereof is payable, the rate of interest shall be such as the Minister may from time to time determine.

(5) As from the end of the initial period interest on the amount outstanding in respect of the principal of the Crown Agents' commencing capital debt shall be payable at such rate as the Minister may from time to time determine.

(6) Different rates may be determined under subsection (4) or (5) with respect to different portions of the debt.

(7) Any sums received by the Minister by way of interest on or repayment of the Crown Agents' commencing capital debt shall be paid into the National Loans Fund.

(8) The approval of the Treasury shall be required for any determination by the Minister under this section; but section 5(2) of the [1968 c. 13.] National Loans Act 1968 (criteria for fixing or approving rates of interest) shall not apply to approval by the Treasury of a rate of interest on the Crown Agents' commencing capital debt or any portion thereof for any part of the initial period.

(9) For the purposes of this section " the initial period " means the period of five years or, if the Minister by order so provides, seven years beginning with the appointed day.

(10) No order shall be made under subsection (9) unless a draft thereof has been laid before and approved by a resolution of the House of Commons.