PART 3 TRANSFER OF PROPERTY, RIGHTS AND LIABILITIES

Interpretation and application of Part 3

6.—(1) In this Part —

“associated property”, in relation to any land of a predecessor council, means —

(a)

property in or on the land which is used or intended to be used by the council exclusively for the discharge of functions on the land;

(b)

property which is so used or intended to be so used and which is kept elsewhere when not in use;

(c)

investments or cash which relate exclusively to the land; and

(d)

records which relate exclusively to the land;

“contract” includes any enforceable undertaking;

“financial reserves”, in relation to a predecessor council and any successor council, means—

(a)

the total of such amounts of a description contained in section 41(3)(b) of the Local Government and Housing Act 1989(1) (expenditure to be charged to revenue account) as have at any time been charged to a revenue account of the predecessor council, to the extent that those amounts have not been applied before the reorganisation date; and

(b)

the total of the amount of the predecessor council’s capital receipts, as defined for the purposes of Chapter 1 of the Local Government Act 2003(2) (capital finance etc and accounts), as have not been applied before the reorganisation date—

(i)

to meet expenditure incurred for capital purposes; or

(ii)

as provision to meet credit liabilities; and

“investment” does not include any land held as an investment.

(2) Regulations 9 to 13 do not apply where regulation 7 applies.

(1)

1989 c.42.

(2)

2003 c.26. As to “capital receipts” see section 9(1) of that Act.