The Local Authorities (Capital Finance) Regulations 1997

Preliminary provisions

Interpretation

64.  In this Part—

“nil per cent. receipt” means a capital receipt of which the reserved part is nil per cent. by virtue of regulation 65;

“the authority”, in relation to a capital receipt, means the local authority by whom the receipt is received; and

“reserved part”, in relation to a capital receipt received by a local authority, means the amount or the percentage of the receipt which is the reserved part of the receipt for the purposes of section 59 (the reserved part of capital receipts).

Capital receipts of debt-free authorities

65.—(1) In this regulation—

• “disregarded borrowing” means—

  (a)

  borrowing which is short-term borrowing for the purposes of section 45(1)(b) (the authority’s own borrowing limits);

  (b)

  borrowing undertaken under section 5 of the City of London (Various Powers) Act 1924(1); or

  (c)

  borrowing undertaken before 24th August 1995, other than borrowing by the issue of stock on or after 15th December 1993, from a person who is not a relevent lender; and

• “relevant lender” means—

  (a)

  the Public Works Loan Board;

  (b)

  the Bank of England;

  (c)

  the European Investment Bank;

  (d)

  a body mentioned in any of paragraphs 1 to 17, or in paragraph 28, 29 or 30, of Part II of the Schedule to the Local Authorities (Capital Finance) (Approved Investments) Regulations 1990;

  (e)

  an authorised institution (within the meaning which that expression has in the Banking Act 1987 (2); or

  (f)

  a building society (within the meaning given to that expression in the Building Societies Act 1986 (3)).

(2) The reserved part of a capital receipt shall be nil per cent. where—

(a) at the beginning of the financial year in which the receipt is received, the credit ceiling of the authority, as determined under Part III of Schedule 3 to the Act, was nil or a negative amount;

(b) at the time the receipt is received, the authority have no money outstanding by way of borrowing other than disregarded borrowing;

(c) the reserved part does not fall to be determined under regulation 67, 68, 69 or 70; and

(d) if the receipt was derived from the disposal of an interest in a dwelling held for the purposes of Part II of the Housing Act 1985 (provision of housing accommodation)(4), the disposal was made by virtue of Part V of that Act (the right to buy).

(1)

1924 c. xxxvii. Section 5 was repealed by section 40(1) of the City of London (Various Powers) Act 1960 (c. xxxvi).

(2)

1987 c. 22.

(3)

1986 c. 53.

(4)

1985 c. 68.