Transport Act 2000

52 Loans

(1) This section applies if any property, rights or liabilities are transferred under a transfer scheme to a transferee which at the time of the transfer is a company falling within subsection (3).

(2) With the Treasury’s approval the Secretary of State may make loans of such amounts as he thinks fit to the transferee if when the loans are made it is a company falling within subsection (3).

(3) A company falls within this subsection if it is—

(a) a company which is wholly owned by the Crown,

(b) a company which is wholly owned by the CAA, or

(c) a company which is a wholly owned subsidiary of a company falling within paragraph (a) or (b).

(4) If loans are made under this section—

(a) they must be repaid to the Secretary of State at such times and by such methods as he may specify in a direction given with the Treasury’s approval;

(b) interest on them must be paid to him at such rates and at such times as may be specified in such a direction.

(5) The Secretary of State must exercise his powers under this section so as to ensure that the aggregate of the amounts outstanding in respect of the principal of loans made under this section does not at any time exceed £1,000 million.

(6) In respect of each financial year the Secretary of State must prepare, in such form as may be specified in a direction given by the Treasury, an account of—

(a) sums issued to him out of the National Loans Fund for making loans under this section,

(b) sums received by him under subsection (4), and

(c) how he has disposed of those sums.

(7) The Secretary of State must send the account to the Comptroller and Auditor General not later than the end of the month of August in the following financial year.

(8) The Comptroller and Auditor General must examine, certify and report on the account and must lay copies of it and of his report before each House of Parliament.