PART 3CREDIT ARRANGEMENTS

COST OF CREDIT ARRANGEMENTS

Calculation of cost of credit arrangementsF1I16

For the purposes of section 8(2) (entry into a credit arrangement or variation to be treated as the borrowing of an amount equal to the cost of the arrangement or variation), the cost of a credit arrangement or variation of a credit arrangement is—

a

in the case of a securitisation transaction, an amount equal to the value of the consideration received by the authority as a result of that transaction, or

b

in all other cases, the amount of the liability in respect of that arrangement or variation which is shown, in accordance with proper practices, in the authority’s accounts.