G16.—(1) In determining the amount of a basic credit approval or a supplementary credit approval to be issued by the Authority, the Secretary of State or other Minister may have regard, subject to the following provisions of this article, to such factors as appear to him to be appropriate.
(2) Without prejudice to the generality of paragraph (1) above, the Secretary of State or other Minister may, in particular, have regard—
(a)to the amount of any grants or contribution which it appears to him that the Authority has received and is likely to receive from any person in respect of expenditure incurred by the Authority or to be incurred by it before the expiry of the period for which the credit approval is to have effect; and
(b)subject to paragraph (3) below, to the amount of capital receipts which it appears to him that the Authority has received, might reasonably be expected to have received or to receive or is likely to receive before the expiry of the period for which the credit approval is to have effect.
(3) In determining the amount of credit approval, the Secretary of State or other Minister shall not take account of capital receipts—
(a)to the extent that the Authority is required to set aside the receipts as provision for credit liabilities; or
(b)to the extent that they are applied or paid as mentioned in paragraphs (6) and (7) of article G20 below.
(4) In determining the amount of the basic credit approval or of a supplementary credit approval to be issued to the Authority in any financial year, the Secretary of State or other Minister shall not take account of the extent to which it appears to him that the Authority is or is likely to be in a position to finance expenditure for capital purposes from a revenue account.