2.—(1) In these Regulations unless the context otherwise requires–
“established rate” means–
on the coming into force of these Regulations, 14 per cent. per annum; and
in relation to any date after the first reference date after the coming into force of these Regulations, the reference rate found on the immediately preceding reference date;
“operative date” means the sixth day of each month;
“reference date” means the day of each month which is the twelfth working day before the sixth day of the following month;
“section 178” means section 178 of the Finance Act 1989;
“working day” means any day other than a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882(1).
(2) In these Regulations the reference rate found on a reference date is the percentage per annum found by averaging the base lending rates at close of business on that date of–
(a)Bank of Scotland,
(b)Barclays Bank p.l.c.,
(c)Lloyds Bank p.l.c.,
(d)Midland Bank p.l.c.,
(e)National Westminster Bank p.l.c., and
(f)The Royal Bank of Scotland p.l.c.,
and, if the result is not a whole number, rounding the result to the nearest such number, with any result midway between two whole numbers rounded down.
Commencement Information
I1Reg. 2 in force at 18.8.1989, see reg. 1
1882 c. 61; section 92 was amended by sections 3(1) and (3) and 4(4) of the Banking and Finance Dealings Act 1971 (c. 80).