PART ITransfer of Undertaking of British Airports Authority
Dissolution of BAA and vesting of its property etc. in a successor company
3Cancellation of liabilities of BAA to the Secretary of State
1
Subject to subsections (2) and (3), any liability of the BAA to the Secretary of State—
a
in respect of the BAA's commencing capital debt, or
b
in respect of loans made, or having effect as if made, under section 6 of the 1975 Act (Government loans to BAA),
shall be extinguished immediately before the appointed day ; and the assets of the National Loans Fund shall be reduced accordingly.
2
Subsection (1)(a) shall not operate to extinguish any liability of the BAA under section 4 of the 1975 Act (commencing capital debt of the BAA)—
a
to repay any part of the principal of its commencing capital debt which falls due for repayment before the appointed day, or
b
to pay interest on its commencing capital debt in respect of a period falling before that day.
3
Subsection (1)(b) shall not operate to extinguish any liability of the BAA under section 6 of the 1975 Act—
a
to repay any part of the principal of any such loan as is referred to in subsection (1)(b) which falls due for repayment before the appointed day, or
b
to pay interest on any such loan in respect of a period falling before that day.
4
References in this section to the BAA's commencing capital debt are references to the debt referred to in section 4(1) of the 1975 Act.