National Health Service and Community Care Act 1990

Section 9.

SCHEDULE 3 E+W Financial Provisions Relating to NHS Trusts

Borrowing E+W

1 (1) Subject to [F1 any 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.

F2 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F3 (6) 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).]

Textual Amendments

F1 Words in Sch. 3 para. 1 inserted (1.9.1999 for E. and 1.11.1999 for W.) by 1999 c. 8, s. 17(1)(2); S.I. 1999/2342, art. 2(1), Sch. 1; S.I. 1999/3184, art. 2(1), Sch. 1

F2 Sch. 3 para. 1(3)-(5) omitted (1.9.1999 for E. and 1.11.1999 for W.) by virtue of 1999 c. 8, s. 17(1)(3); S.I. 1999/2342, art. 2(1), Sch.; S.I. 1999/3184, art. 2(1), Sch. 1; and para. 1(3)-(5) repealed (1.4.2000) by 1999 c. 8, s. 65(2), Sch. 5; S.I. 2000/1041, art. 2(d), Sch.

F3 Sch. 3 para. 1(6) substituted (1.9.1999 for E. and 1.11.1999 for W.) by 1999 c. 8, s. 17(1)(4); S.I. 1999/2342, art. 2(1), Sch. 1; S.I. 1999/3184, art. 2(1), Sch. 1

Guarantees of borrowing E+W

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 E+W

3 (1) The aggregate of all sums borrowed by NHS trusts [F4 which 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.

F5 (2) The aggregate of all sums borrowed by NHS trusts [F4 which 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.

F5 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Words in Sch. 3 para. 3(1)(2) substituted (restrospectively) by 1999 c. 8, s. 13(9)(10); S.I. 1999/2540, art. 2(1)(a), Sch. 1; S.I. 1999/3184, art. 2(1), Sch. 1

F5 Sch. 3 para. 3(3) omitted (1.9.1999 for E. and 1.11.1999 for W.) by virtue of 1999 c. 8, s. 15(6); S.I. 1999/2342, art. 2(1), Sch. 1; S.I. 1999/3184, art. 2(1), Sch. 1; and para. 3(3) repealed (1.4.2000) by 1999 c. 8, s. 65(2), Sch. 5; S.I. 2000/1041, art. 2(d), Sch.

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 E+W

5 (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.

F6 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 Sch. 3 para. 5(2) omitted (1.9.1999 for E. and 1.11.1999 for W.) by virtue of 1999 c. 8, s. 15(6); S.I. 1999/2342, art. 2(1), Sch. 1; S.I. 1999/3184, art. 2(1), Sch. 1; and para. 5(2) repealed (1.4.2000) by 1999 c. 8, s. 65(2), Sch. 5; S.I. 2000/1041, art. 2(d), Sch.

Modifications etc. (not altering text)

C1 Sch. 3 para. 5: Treasury consent requirement continued (W.) (1.7.1999) by S.I. 1999/672, arts. 1(2), 2, Sch. 1

Valid from 01/08/2001

Supplementary payments E+W

[F7 5A (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.]

Textual Amendments

F7 Sch. 3 para. 5A inserted (1.8.2001 for E. and 1.7.2002 for W.) by 2001 c. 15, s. 3(1), (with ss. 64(9), 65(4)); S.I. 2001/2804, art. 2(1)(a); S.I. 2002/1475, art. 2(1), Sch. Pt. 1

Surplus funds E+W

6 If it appears to the Secretary of State that any [F8 sum 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 [F8 that sum] into the Consolidated Fund.

Textual Amendments

F8 Words in Sch. 3 para. 6 substituted (1.9.1999 for E. and 1.4.2000 for W.) by 1999 c. 8, s. 65(1), Sch. 4 paras. 74, 84(2)(b); S.I. 1999/2342, art. 2(1), Sch. 1; S.I. 2000/1026, art. 2(1), Sch.

Modifications etc. (not altering text)

C2 Sch. 3 para. 6 modified (W.) (1.7.1999) by S.I. 1999/672, arts. 1(2), 2, Sch. 1

Investment E+W

[F9 7 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]

Textual Amendments

F9 Sch. 3 para. 7 substituted (1.9.1999 for E. and 1.4.2000 for W.) by 1999 c. 8, s. 65(1), Sch. 4 paras. 74, 84(3); S.I. 1999/2342, art. 2(1), Sch. 1; S.I. 2000/1026, art. 2(1), Sch.

[F10 8 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.]

Textual Amendments

F10 Sch. 3 para. 8 inserted (1.9.1999 for E. and 1.4.2000 for W.) by 1999 c. 8, s. 65(1), Sch. 4 paras. 74, 84(4); S.I. 1999/2342, art. 2(1), Sch. 1; S.I. 2000/1026, art. 2(1), Sch.