Part IV Finance
F1 Financial reconstruction
62A Power to extinguish loan obligations of development corporations.
1
The Secretary of State may, with the Treasury’s consent, by order extinguish to such extent as may be specified in the order any liabilities of a development corporation in respect of advances made by him to the corporation under section 58(1) or the corresponding provisions of the 1946 Act or the 1965 Act.
2
The aggregate amount of liabilities extinguished by order under this section shall not exceed £1,750 million.
3
Where liabilities are extinguished under this section the assets of the National Loans Fund shall be reduced by amounts corresponding to the liabilities so extinguished.
4
No order shall be made under this section after 30th September 1986.
5
No order shall be made under this section unless a draft of the order has been laid before, and approved by a resolution of, the House of Commons.
6
In this section—
a
“the 1946 Act” means the M1New Towns Act 1946 and the provision of it corresponding to section 58(1) is section 12(1); and
b
“the 1965 Act” means the M2New Towns Act 1965 and the provision of it corresponding to section 58(1) is section 42(1).
Ss. 62A, 62B and cross-heading inserted by New Towns and Urban Development Corporations Act 1985 (c. 5, SIF 123:3, 4), s. 8(1)