15.—(1) A local authority who issue stock or bonds shall make a scheme in accordance with paragraph 15 of Schedule 13 to the Local Government Act 1972 to establish and operate a loans fund for the purpose of defraying expenditure which they are authorised to meet out of money borrowed by them and for the redemption of such stock or bonds.
(2) Where the local authority issue stock or bonds at a discount, the difference between the issue price and nominal value shall form part of the loan.
(3) The expenses of the local authority incurred in the issue of stock or bonds may be charged to capital and may be deemed money raiseable under a statutory borrowing power and may, if the issue was at a premium, be wholly or partly defrayed out of the monies received by way of premium.