(1)The Secretary of State may guarantee—
(a)the repayment of the principal of any sum borrowed by the NDA from a person other than the Secretary of State;
(b)the payment of interest on such a sum; and
(c)the discharge of any other financial obligation of the NDA in connection with the borrowing of such a sum.
(2)The Secretary of State may give a guarantee under this section in such manner, and on such terms, as he thinks fit.
(3)As soon as practicable after giving a guarantee under this section, 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 section, the NDA 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 subsection.
(5)Payments to the Secretary of State under subsection (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 section, 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 subsection (6) unless—
(a)before the beginning of that year, the whole of that sum has been repaid to the Secretary of State under subsection (4); and
(b)the NDA is not at any time during that year subject to a liability to pay interest on amounts that became due under that subsection in respect of that sum.
(8)The approval of the Treasury is required—
(a)for the giving of a guarantee under this section; and
(b)for the giving by the Secretary of State of a direction under subsection (4) or (5).
(9)The Secretary of State must pay sums received by him by virtue of subsection (4) into the Consolidated Fund.
Commencement Information
I1S. 25 in force at 5.10.2004 by S.I. 2004/2575, art. 2(1), Sch. 1