Regional Development Agencies Act 1998

11 Borrowing

(1) A regional development agency shall be entitled to borrow in accordance with the following provisions of this section, but not otherwise.

(2) Subject to subsection (5), a regional development agency may, with the consent of the Secretary of State, borrow temporarily in sterling, by way of overdraft or otherwise, from persons other than the Secretary of State, such sums as it may require for meeting its obligations and carrying out its functions.

(3) The Secretary of State shall not give consent for the purposes of subsection (2) without the approval of the Treasury.

(4) Subject to subsection (5), a regional development agency may borrow from the Secretary of State, by way of temporary loan or otherwise, such sums in sterling as it may require for meeting its obligations and carrying out its functions.

(5) A regional development agency may not borrow under this section if the effect would be—

(a) to take the aggregate amount outstanding in respect of the principal of sums borrowed under this section by regional development agencies over the collective borrowing limit, or

(b) to increase the amount by which the aggregate amount so outstanding exceeds that limit.

(6) For the purposes of subsection (5), the collective borrowing limit is—

(a) £200 million, or

(b) such greater sum as the Secretary of State may, with the approval of the Treasury, specify by order made by statutory instrument.

(7) An order under subsection (6)(b) shall not be made unless a draft of the order has been laid before, and approved by a resolution of, the House of Commons.