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.