3(1)Subject to paragraph 4 below, the Secretary of State with the approval of the Treasury may guarantee, in such manner and on such terms as he may think fit, the repayment of the principal of, the payment of interest on, and the discharge of any other financial obligation in connection with, any sums which are borrowed from a person other than the Secretary of State for the purpose of meeting qualifying expenditure.E+W+S
(2)Immediately after a guarantee is given under this paragraph, the Secretary of State shall lay a statement of the guarantee before each House of Parliament; and immediately after any sum is paid for fulfilling a guarantee so given, the Secretary of State shall so lay a statement relating to that sum.
(3)Any sums required by the Secretary of State for fulfilling a guarantee under this paragraph shall be paid out of money provided by Parliament.
(4)If any sums are paid out in fulfilment of a guarantee given under this paragraph the person whose obligations are so fulfilled shall make to the Secretary of State, at such times and in such manner as the Secretary of State may from time to time direct—
(a)payments of such amounts as the Secretary of State may so direct in or towards repayment of the sums so paid out; and
(b)payments of interest on what is outstanding for the time being in respect of sums so paid out at such rate as the Secretary of State may so direct;
and the approval of the Treasury shall be required for the giving of a direction under this sub-paragraph.
(5)Any sums received under sub-paragraph (4) above by the Secretary of State shall be paid into the Consolidated Fund.