Part V FINANCIAL PROVISIONS

CHAPTER II FINANCIAL ASSISTANCE FOR UNDERTAKERS

154 Guarantees under section 153.

(1)

This section applies in relation to any guarantee given by the Secretary of State under section 153 above.

(2)

Immediately after a guarantee to which this section applies is given, the Secretary of State shall lay a statement of the guarantee before each House of Parliament.

(3)

Where any sum is paid out for fulfilling a guarantee to which this section applies, the Secretary of State shall, as soon as possible after the end of each financial year (beginning with that in which the sum is paid out and ending with that in which all liability in respect of the principal of the sum and in respect of the interest thereon is finally discharged), lay before each House of Parliament a statement relating to that sum.

(4)

Any sums required by the Secretary of State for fulfilling a guarantee to which this section applies shall be paid out of money provided by Parliament.

(5)

Without prejudice to any provision applied in relation to the relevant company by Schedule 3 to this Act, if any sums are paid out in fulfilment of a guarantee to which this section applies, the relevant company 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, at such rate as the Secretary of State may so direct, on what is outstanding for the time being in respect of sums so paid out;

and the consent of the Treasury shall be required for the giving of a direction under this subsection.

(6)

Any sums received by the Secretary of State under subsection (5) above shall be paid into the Consolidated Fund.

(7)

In subsection (5) above “the relevant company” in relation to a guarantee, means the company which borrowed the sums in respect of which the guarantee was given.