The Local Authorities (Capital Finance) (Further Consequential and Saving Provisions) Order 2004

The Local Authorities (Contracting Out of Investment Functions) Order 1996

5.—(1) In article 2 of the 1996 Order (interpretation of Part), the definition of “the 1989 Act” shall be omitted.

(2) In article 4 of the 1996 Order (scope of authorisation)—

(a) in paragraph (1), the definition of “approved investment” shall be omitted;

(b) in paragraph (2)—

(i) at the beginning, there shall be inserted “Subject to paragraph (2A),”;

(ii) “in an approved investment” shall be omitted; and

(iii) sub-paragraphs (b) and (c) shall be revoked;

(c) after paragraph (2), there shall be inserted—

“(2A) The investment referred to in paragraph (2) must be an investment which, if made by the local authority, would be permitted by virtue of section 12 of the Local Government Act 2003 (power to invest).”;

(d) in paragraph (4)—

(i) at the beginning, there shall be inserted “Subject to paragraph (4A),”; and

(ii) “in securities” and “, apart from any sum which is held on trust for any beneficiaries or any purposes” shall be omitted;

and

(e) after paragraph (4), there shall be inserted—

“(4A) The investment referred to in paragraph (4) must be an investment which, if made by the parish or community council, would be permitted by virtue of section 12 of the Local Government Act 2003 (power to invest)(1).”.

(1)

Section 12 of the Local Government Act 2003 applies to parish and community councils by virtue of section 19 of that Act.