The Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2008

Early repayment of loans – premiums and discounts after 31st March 2007

This section has no associated Explanatory Memorandum

5.  In regulation 30C(1)—

(a)for paragraph (1)(b) substitute—

(b)as a consequence of such early repayment—

(i)the authority is required to pay a premium to the lender of the loan or is required, in accordance with proper practices, to account for an amount in respect of a premium as if it were required to pay such a premium; or

(ii)the lender of the loan gives the authority a discount on the loan or the authority is required, in accordance with proper practices, to account for an amount in respect of a discount as if the lender had given the authority such a discount; and;

(b)in paragraph (6) for the words after “consecutively);” substitute—

“initial year” means the financial year in which the loan is repaid; and

“replacement loan” means any loan of money to the local authority some or all of which the authority treats, for accounting purposes, as a replacement for some or all of the loan referred to in sub-paragraph (a) of paragraph (1)..

(1)

Regulation 30C was inserted by regulation 6 of S.I. 2007/573.