The Local Government Reorganisation (Wales) (Property etc.) Order 1996

Loan debt

12.—(1) Any liability of an old authority specified in column 1 of Schedule 2 in respect of the payment of interest and the repayment of principal outstanding immediately before 1st April 1996 pursuant to a loan agreement between that authority and the Public Works Loan Commissioners shall, subject to paragraph (2), fall to be discharged by the new authorities specified in relation to that authority in column 2 of that Schedule in the manner described in paragraphs (3) to (6).

(2) Paragraph (1) shall not apply to any instalment of principal or interest which was due for payment by an old authority on or before 31st March 1996 but remained unpaid immediately before 1st April 1996.

(3) Each new authority shall be liable for the repayment of the appropriate percentage of principal outstanding in relation to such a loan agreement.

(4) Each new authority shall discharge that part of the liability apportioned to it at the time and in the manner applicable to the loan agreement in question.

(5) Each new authority shall pay to the Public Works Loan Commissioners interest on that part of the liability apportioned to it at the rate and time and in the manner applicable to the loan agreement in question.

(6) In this article “the appropriate percentage” means the percentage specified in column 3 of Schedue 2 in relation to the new authority in question.