Government guarantees for loans of undesignated publicly controlled transferee companiesU.K.
4(1)Subject to paragraph 6, the Secretary of State may guarantee—U.K.
(a)the repayment of the principal of any sum borrowed otherwise than from him by a transferee company which is not a designated BNFL company but is publicly controlled at the time of the giving of the guarantee,
(b)the payment of interest on such a sum, and
(c)the discharge of any other financial obligation of such a transferee company in connection with the borrowing of such a sum.
(2)The Secretary of State may give a guarantee under this paragraph in such manner, and on such terms, as he thinks fit.
(3)As soon as practicable after giving a guarantee under this paragraph, the Secretary of State must lay a statement of the guarantee before Parliament.
(4)If sums are paid out by the Secretary of State under a guarantee given under this paragraph, the company whose obligations are fulfilled by the payment must pay him—
(a)such amounts in or towards the repayment to him of those sums as he may direct; and
(b)interest, at such rates as he may direct, on amounts outstanding under this sub-paragraph.
(5)Payments to the Secretary of State under sub-paragraph (4) must be made at such times, and in such manner, as he may from time to time direct.
(6)Where a sum has been paid out by the Secretary of State under a guarantee given under this paragraph, he must lay a statement relating to that sum before Parliament—
(a)as soon as practicable after the end of the financial year in which that sum is paid out; and
(b)as soon as practicable after the end of each subsequent relevant financial year.
(7)In relation to a sum paid out under a guarantee, a financial year is a relevant financial year for the purposes of sub-paragraph (6) unless—
(a)before the beginning of that year, the whole of that sum has been repaid to the Secretary of State under sub-paragraph (4); and
(b)the company in question is not at any time during that year subject to a liability to pay interest on amounts that became due under that sub-paragraph in respect of that sum.
(8)The consent of the Treasury is required—
(a)for the giving of a guarantee under this paragraph; and
(b)for the giving of a direction under sub-paragraph (4) or (5).
(9)The Secretary of State must pay sums received by him by virtue of sub-paragraph (4) into the Consolidated Fund.
Commencement Information
I1Sch. 7 para. 4 in force at 5.10.2004 by S.I. 2004/2575, art. 2(1), Sch. 1