After consultation with a corporation, the Secretary of State may, with the Treasury’s approval, determine the financial duties of the corporation, and different determinations may be made in relation to different corporations or for different functions and activities of the same corporation.

The Secretary of State may (out of money provided by Parliament and with the Treasury’s consent) pay to a corporation, in respect of the exercise of its functions and in respect of its administrative expenses, such sums as he may (with the Treasury’s approval) determine.

The payment may be made on such terms as the Secretary of State (with the Treasury’s approval) provides.

The Secretary of State may lend to a corporation any sums it has power to borrow from him sub-paragraph (1) or (2) above.

The Treasury may issue to the Secretary of State out of the National Loans Fund any sums necessary to enable him to make loans under sub-paragraph (3) above.

Loans made under sub-paragraph (3) above shall be repaid to the Secretary of State at such times and by such methods, and interest on the loans shall be paid to him at such times and at such rates, as he may determine.

All sums received by the Secretary of State under sub-paragraph (5) above shall be paid into the National Loans Fund.

References in this paragraph to the Secretary of State are references to him acting with the Treasury’s approval.

The Treasury may guarantee, in such manner and on such conditions as they think fit, the repayment of the principal of F1the payment of interest on and the discharge of any other financial obligation in connection with any sums which a corporation borrows from a person or body other than the Secretary of State.

Immediately after a guarantee is given under this paragraph, the Treasury shall lay a statement of the guarantee before each House of Parliament; and where any sum is issued for fulfilling a guarantee so given, the Treasury shall lay before each House of Parliament a statement relating to that sum, as soon as possible after the end of each financial year, beginning with which the sum is issued and ending with that in which all liability in respect of the principal of the sum and in respect of interest on it is finally discharged.

If any sums are issued in fulfilment of a guarantee given under this paragraph, the corporation shall make to the Treasury, at such times and in such manner as the Treasury may from time to time direct, payments of such amounts as the Treasury so direct in or towards repayment of the sums so issued and payments of interest, at such rates as the Treasury so direct, on what is outstanding for the time being in respect of sums so issued.

Any sums received by the Treasury in pursuance of sub-paragraph (4) above shall be paid into the Consolidated Fund.

On any acquisition to which this paragraph applies, a corporation shall assume a debt to the Secretary of State of such amount as may be notified to the corporation in writing by him, with the Treasury’s approval.

If it appears to the Secretary of State that there has been such a change in circumstances since the property was first brought into public ownership that its true value would not be reflected by reference to the consideration mentioned in sub-paragraph (3) above, the Secretary of State, with the Treasury’s approval, shall determine the amount to be notified.

The rate of interest payable on the debt assumed by a corporation under this paragraph, and the date from which interest is to begin to accrue, the arrangements for paying off the principal, and the other terms of the debt shall be such as the Secretary of State, with the Treasury’s approval, may from time to time determine.

Different rates and dates may be determined under sub-paragraph (5) above with respect to different portions of the debt.

Any sums received by the Secretary of State under sub-paragraph (5) above shall be paid into the National Loans Fund.

Where it appears to the Secretary of State, after consultation with the Treasury and the corporation, that a corporation has a surplus, whether on capital or on revenue account, after making allowance by way of transfer to reserve or otherwise for its future requirements, the corporation shall, if the Secretary of State with the approval of the Treasury and after consultation with the corporation so directs, pay to the Secretary of State such sum not exceeding the amount of that surplus as may be specified in the direction.

Any sum received by the Secretary of State under this paragraph shall, subject to sub-paragraph (4) below, be paid into the Consolidated Fund.

The whole or part of any payment made to the Secretary of State by a corporation under sub-paragraph (1) above shall, if the Secretary of State with the Treasury’s approval so determines, be treated as made by way of repayment of such part of the principal of loans under paragraph 4(3) above, and as made in respect of the repayments due at such times, as may be so determined.

Any sum treated under sub-paragraph (3) above as a repayment of a loan shall be paid by the Secretary of State into the National Loans Fund.

The aggregate amount of the sums mentioned in sub-paragraph (2) below shall not exceed £30 million or such greater sum not exceeding £100 million as the Secretary of State may by order made by statutory instrument specify.

No order under sub-paragraph (1) above shall have effect until approved by a resolution of the House of Commons.

The Secretary of State shall send the account to the Comptroller and Auditor General before the end of the month of November next following the end of that year.

The Comptroller and Auditor General shall examine, certify and report on the account and lay copies of it and of his report before each House of Parliament.

The form of the account and the manner of preparing it shall be such as the Treasury may direct.

A corporation shall keep proper accounts and other records in relation to them.

The accounts and records shall show, in respect of the financial year to which they relate, a true and fair view of the corporation’s activities.

Subject to any requirement notified to be corporation under sub-paragraph (3) above, in preparing any statement of accounts in accordance with that sub-paragraph the corporation shall follow, with respect to each of the matters specified in paragraphs (a) to (c) of that sub-paragraph, such course as may for the time being be approved by the Secretary of State with the Treasury’s consent.

A corporation to which this paragraph applies shall send a copy of its accounts and statement of accounts for each financial year ending on or after 31st March 2005 to the Comptroller and Auditor General as soon as reasonably practicable after the end of that year.

The Comptroller and Auditor General shall examine, certify and report on the accounts and statement received under sub-paragraph (1).

F8The accounts and statements of accounts of a corporation to which paragraph 10A does not apply shall be audited by an auditor to be appointed annually by the Secretary of State in relation to the corporation.

A person shall not be appointed under sub-paragraph (1) unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

As soon as possible after the end of each financial year, a corporation shall make to the Secretary of State a report dealing generally with the corporation’s operations during the year, and shall include in the report a copy of its audited statement of accounts of that year.

Without prejudice to the generality of sub-paragraph (1) above, a report under this paragraph shall deal with the operation during the year of the corporation’s arrangements for consultation about the exercise of its powers with local authorities the whole or any part of whose area is included in the urban development area.