Crown Agents Act 1979

19 Limit on certain liabilities of Crown Agents and their subsidiaries

(1) The aggregate of the following amounts, namely—

(a) the amounts outstanding in respect of the principal of money borrowed by the Crown Agents under section 18 otherwise than from a wholly owned subsidiary of theirs;

(b) the amount outstanding in respect of the principal of the Crown Agents' commencing capital debt; and

(c) all liabilities which for the time being are to be taken into account for the purposes of this subsection by virtue of subsection (2),

shall not at any time exceed £50 million or such greater sum. not exceeding £80 million, as the Minister may from time to time, with the consent of the Treasury, by order specify.

(2) Where any asset is being leased or hired by the Crown Agents or any of their subsidiaries at any time in circumstances such that, in the relevant accounts, if made up to that time—

(a) that asset would be capitalised ; and

(b) the present and future liabilities of the Crown Agents or the subsidiary, as the case may be, under the lease or hiring agreement would be shown,

the aggregate of those liabilities, as they would be shown in those accounts, shall be taken into account for the purposes of subsection (1) in its application to that time.

(3) For the purposes of subsection (2) " the relevant accounts " means—

(a) in the case of an asset leased or hired by the Crown Agents, a statement of accounts dealing with the Crown Agents and complying with any requirements duly notified to the Crown Agents under section 22(4);

(b) in the case of an asset leased or hired by a subsidiary of the Crown Agents, a statement of consolidated accounts dealing with the Crown Agents and that subsidiary and complying with any such requirements.

(4) No order shall be made under subsection (1) unless a draft thereof has been laid before and approved by a resolution of the House of Commons.

(5) Section 18(7) applies for the purposes of this section.