Housing Associations Act 1985

93 Limit on borrowing

(1) The Corporation has only the borrowing powers conferred by section 92 and those powers are exercisable subject to the following limit.

(2) The aggregate amount outstanding by way of principal of—

(a) advances made to the Corporation under section 9 of the [1964 c. 56.] Housing Act 1964 before 18th September 1974 (when that section was repealed),

(b) advances made to housing associations before 1st April 1975 in respect of which the rights and obligations of the Secretary of State were then transferred to the Corporation by section 34 of the [1974 c. 44.] Housing Act 1974,

(c) money borrowed by the Corporation under section 92, and

(d) money borrowed by a subsidiary of the Corporation otherwise than from the Corporation,

shall not exceed £2,500 million or such greater sum not exceeding £3,000 million as the Secretary of State may specify by order made with the consent of the Treasury.

(3) An order under subsection (2) shall be made by statutory instrument and no such order shall be made unless a draft of it has been laid before and approved by the House of Commons.

(4) In ascertaining the limit imposed by subsection (2), interest payable on a loan made by the Secretary of State to the Corporation which, with the approval of the Treasury, is deferred and treated as part of the loan, shall, so far as outstanding, be treated as outstanding by way of principal.

(5) The power of the Corporation to borrow from a subsidiary of the Corporation is not affected by subsection (1) and borrowing from such a subsidiary shall be left out of account for the purposes of subsection (2).