3.—(1) Any credit arrangement —
(a)within the meaning of section 48 of the Local Government and Housing Act 1989 (credit arrangements);
(b)in existence immediately before 1st April 2004; and
(c)which, if it had been entered into on 1st April 2004, would be a credit arrangement within the meaning of section 7 of the Act (“credit arrangements”),
shall be treated as if it were a credit arrangement for the purposes of Chapter 1 of Part 1 of the Act (capital finance etc.).
(2) The usable part of any capital receipt —
(a)within the meaning of section 60(2) of the Local Government and Housing Act 1989 (the usable balance of capital receipts); and
(b)which is not applied by the local authority in any financial year beginning before 1st April 2004,
is to be treated as if it were a capital receipt within the meaning of section 9 of the Act (“capital receipt”) for the purposes of Chapter 1 of Part 1 of the Act.