Part 1Capital finance etc and accounts
Chapter 1Capital finance etc
Credit arrangements
8Control of credit arrangements
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.