The Milk Marketing Board (Residuary Functions) Regulations 1994

Regulations 18(1) and 21

SCHEDULE 4 B RESERVE FUND

1.—(1) The Board shall maintain the B Reserve Fund in a separate account which shall be a deposit account opened in their name at a clearing bank and designated “B Reserve Fund Account”.

(2) The Board shall keep and maintain records of–

(a) payments into,

(b) withdrawals from, and

(c) interest accrued to,

the account mentioned in paragraph (1) above.

2.—(1) The milk receipt retentions shall be payable to end year producers in accordance with, and to the extent provided for in, this Schedule.

(2) Any amount which in accordance with this Schedule the Board determine shall be paid as an interim payment for the purpose of repayment of the milk receipt retentions (in this Schedule referred to as “interim payment”) or as a final payment for that purpose (in this Schedule referred to as “final payment”) shall be divided among the producers in respect of whose milk the milk receipt retentions have been made proportionately to the amounts of such retentions.

(3) Subject to sub–paragraph (4) below, the Board shall complete the payments referred to in sub–paragraph (2) above before they make any interim or final distributions.

(4) Sub–paragraph (3) above shall not prohibit the earlier transfer or, as the case may be, issue and allotment referred to in sub–paragraph (a) of the definition of “relevant asset total” in regulation 2(1).

3.  No sum may be withdrawn from the B Reserve Fund unless–

(a) such withdrawal is in accordance with paragraphs 4, 6, or 7 below, and

(b) the authority or consent of the Minister has first been obtained.

4.—(1) Subject to paragraph 3(b) above, and provided that the condition specified in paragraph 5 below is complied with, the Board may withdraw moneys standing to the credit of the B Reserve Fund in order to–

(a) discharge any actual liabilities–

(i) as they fall due for payment;

(ii) upon the winding up of the Board;

(b) make interim and final payments.

(2) The Board shall hold any moneys not so withdrawn as a reserve in order to meet the Board’s contingent liabilities or make further interim payments or apply them in accordance with paragraph 6 below.

5.  The condition mentioned in paragraph 4 above is that the Board shall withdraw moneys under that paragraph only if they would otherwise be unable to discharge such liabilities or make such payments.

6.  Subject to paragraph 3(b) above, the Board shall withdraw all moneys standing to the credit of the B Reserve Fund (to the extent that such money is not withdrawn upon the winding up of the Board for the purpose of discharging actual liabilities) and apply them as a final payment at the final liquidation of the Board.

7.—(1) Subject to the provisions of this paragraph, where–

(a) the Board have withdrawn funds from the B Reserve Fund to meet, and have met, their liabilities, and

(b) there are moneys standing to the credit of the general fund,

the Board shall apply such moneys to make a final payment in accordance with sub–paragraph (2) below.

(2) The amount to be paid in the circumstances mentioned in sub–paragraph (1) above shall be an amount which is equal to all the withdrawals which have been made from the B Reserve Fund for the purpose of meeting liabilities of the Board (other than liabilities in respect of repayment of the milk receipt retentions), increased or decreased correspondingly with any adjustment made to the total of the B Reserve Fund under paragraph 8 below.

(3) This paragraph is subject to paragraph 3(b) above.

8.  Any net surplus or deficit in funds arising from the Board’s normal trading activities at Vesting Day shall be added to or subtracted from the B Reserve Fund prior to determining the total amount to be paid by way of final payments.

9.  As long as moneys remain in the B Reserve Fund it shall be reviewed by the Minister at the expiry of the sixth calendar month after Vesting Day and thereafter at intervals of six months.

10.  The Minister shall notify the Board of any amount by which the B Reserve Fund appears to the Minister on a review under paragraph 9 above to exceed the reasonable requirements of the Board and on such notification the Board shall arrange for that amount to be withdrawn from it by way of interim or final payments.

11.  In this Schedule “milk receipt retentions” means the sum which in accordance with provisions of the approved scheme relating to the B Reserve Fund–

(a) is retained by the Board from their receipts for milk supplied to them by end year producers in the final trading period (being not less than 0.2 pence per litre of milk supplied by every such producer in that period), and

(b) is paid by the Board into the B Reserve Fund.