SCHEDULES
SCHEDULE 3 Financial Provisions Relating to NHS Trusts
Borrowing
1
1
Subject to F1any direction given by the Secretary of State under section 17 of the principal Act, to the provisions of this paragraph and to any limit imposed under the following provisions of this Schedule, for the purpose of its functions an NHS trust may borrow (both temporarily, by way of overdraft, and longer term) from the Secretary of State or from any other person.
2
An NHS trust may not mortgage or charge any of its assets or in any other way use any of its assets as security for a loan.
F23
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F24
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F25
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F36
It shall be for the Secretary of State, with the consent of the Treasury, to determine the terms of any loan made by him to an NHS trust (including terms as to the payment of interest, if any).
Guarantees of borrowing
2
1
The Secretary of State may guarantee, in such manner and on such conditions as, with the approval of the Treasury, he considers appropriate, the repayments of the principal of and the payment of interest on any sums which an NHS trust borrows from a person other than the Secretary of State.
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.
3
Where any sum is issued for fulfilling a guarantee so given, the Secretary of State shall lay before each House of Parliament a statement relating to that sum as soon as possible after the end of each financial year beginning with that in which the sum is issued and ending with that in which all liability in respect of the principal of the sum and in respect of interest on it is finally discharged.
4
If any sums are issued in fulfilment of a guarantee given under this paragraph, the NHS trust concerned 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 with the consent of the Treasury so directs in or towards repayment of the sums so issued; and
b
payments of interest, at such rates as the Secretary of State with the consent of the Treasury so directs, on what is outstanding for the time being in respect of sums so issued.
Limits on indebtedness
3
1
The aggregate of all sums borrowed by NHS trusts F4which are required to provide services at or from, hospitals or other establishments or facilities which are situated in England shall not exceed £5,000 million or such other sum not exceeding £10,000 million as may be specified by order made by the Secretary of State with the consent of the Treasury.
F52
The aggregate of all sums borrowed by NHS trusts F4which are required to provide services at or from, hospitals or other establishments or facilities which are situated in Wales shall not exceed £300 million or such other sum not exceeding £600 million as may be specified by order made by the Secretary of State with the consent of the Treasury.
F53
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4
Any power to make an order under paragraph 3 above shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.
Additional public dividend capital
C15
1
If the Secretary of State, with the consent of the Treasury, considers it appropriate to do so, he may, instead of making a loan to an NHS trust under paragraph 1 above, pay an amount to the trust as public dividend capital.
F62
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5AF7Supplementary payments
1
If the Secretary of State considers it appropriate to do so, he may make a payment to the trust.
2
The payment may be subject to such conditions as he thinks fit to impose, including conditions as to repayment.
Surplus funds
C26
If it appears to the Secretary of State that any F8sum held by an NHS trust otherwise than as a trustee is surplus to its foreseeable requirements, the trust shall, if the Secretary of State with the approval of the Treasury and after consultation with the trust so directs, pay F8that sum into the Consolidated Fund.
Investment
F97
An NHS trust shall have power to invest money held by it in any investments, including investments which do not produce income, specified in directions under section 17 of the principal Act; but nothing in this paragraph applies in relation to money held by an NHS trust as trustee
F108
Any direction under section 17 of the principal Act with respect to—
a
the power conferred on an NHS trust by paragraph 1 above; or
b
the maximum amount which an NHS trust may invest in any investments or class of investments,
may be given only with the consent of the Treasury.