Postal Services Act 2011

81 Guarantees where postal administration order is made

(1) This section applies if a postal administration order has been made in relation to a company.

(2) The Secretary of State may, with the consent of the Treasury, guarantee—

(a) the repayment of any sum borrowed by the company while that order is in force,

(b) the payment of interest on any sum borrowed by the company while that order is in force, and

(c) the discharge of any other financial obligation of the company in connection with the borrowing of any sum while that order is in force.

(3) The Secretary of State may give the guarantees in such manner, and on such terms, as the Secretary of State considers appropriate.

(4) As soon as practicable after giving a guarantee under this section, the Secretary of State must lay a statement of the guarantee before Parliament.

(5) If sums are paid out by the Secretary of State under a guarantee given under this section, the company must pay the Secretary of State—

(a) such amounts in or towards the repayment to the Secretary of State of those sums as the Secretary of State may, with the consent of the Treasury, direct, and

(b) interest on amounts outstanding under this subsection at such rates as the Secretary of State may, with the consent of the Treasury, direct.

(6) The payments must be made by the company at such times, and in such manner, as the Secretary of State may, with the consent of the Treasury, from time to time direct.

(7) If a sum has been paid out under a guarantee given under this section, the Secretary of State must lay a statement relating to that sum before Parliament—

(a) as soon as practicable after the end of the financial year in which the sum is paid out, and

(b) as soon as practicable after the end of each subsequent financial year in relation to which the repayment condition has not been met.

(8) The repayment condition is met in relation to a financial year if—

(a) the whole of the sum has been repaid to the Secretary of State before the beginning of the year, and

(b) the company was not at any time during the year liable to pay interest on amounts that became due in respect of the sum.

(9) The Secretary of State must pay sums received as a result of subsection (5) into the Consolidated Fund.

(10) In this section “financial year” means a period of 12 months ending with 31 March.