Local Government Act 2003

8 Control of credit arrangements E+W

(1) A local authority may not enter into, or vary, a credit arrangement if doing so would result in a breach of—

(a) the limit for the time being determined by or for it under section 3, or

(b) any limit for the time being applicable to it under section 4.

(2) In applying those limits for the purposes of subsection (1)—

(a) entry into a credit arrangement shall be treated as the borrowing of an amount of money equal to the cost of the arrangement, and

(b) variation of a credit arrangement shall be treated as the borrowing of an amount of money equal to the cost of the variation.

(3) The Secretary of State may by regulations make provision about the calculation for the purposes of subsection (2) of the cost of a credit arrangement or a variation and may, in particular, make provision about the treatment of options.

Commencement Information

I1 S. 8 in force at 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004 by S.I. 2003/3034, art. 2, Sch. 1 Pt. I (with Sch. 2 para. 3)

I2 S. 8(1)(2) in force at 1.4.2004 for E. by S.I. 2003/2938, art. 7(b) (with art. 8, Sch.)

I3 S. 8(3) in force at 18.11.2003 for E. by S.I. 2003/2938, art. 3(a) (with art. 8, Sch.)