C1C2C3C4Part 1Capital finance etc and accounts

Annotations:
Modifications etc. (not altering text)
C1

Meaning of “local authority” in Pt. 1 modified (5.3.2008) by Cheshire (Structural Changes) Order 2008 (S.I. 2008/634), arts. 1, 9(9)(c)

C2

Meaning of “local authority” in Pt. 1 modified (28.3.2008) by Bedfordshire (Structural Changes) Order 2008 (S.I. 2008/907), arts. 1, 20(7)(c)

C3

Pt. 1 applied (15.1.2014) by Humber Bridge Act 2013 (c. vi), ss. 1(1), 8(4)

Chapter 1Capital finance etc

Credit arrangements

I27“Credit arrangements”

I31

For the purposes of this Chapter, a local authority shall be taken to have entered into a credit arrangement where—

a

it enters into a transaction which gives rise to a liability on its part, and

b

the liability is a qualifying liability.

2

A transaction entered into by a local authority is to be taken for the purposes of subsection (1) as giving rise to a liability on the part of the authority if—

I3a

it falls in accordance with proper practices to be treated for the purposes of the authority’s accounts as giving rise to such a liability, or

I1b

it falls in accordance with regulations made by the Secretary of State to be treated as falling within paragraph (a).

3

The reference in subsection (1)(b) to a qualifying liability is to any liability other than—

I3a

a liability to repay money,

I3b

a liability in respect of which the date for performance is less than 12 months after the date on which the transaction giving rise to the liability is entered into, and

I1c

a liability of a description specified for the purposes of this provision by regulations made by the Secretary of State.