Citation, commencement and interpretation

1.-(1) This Order may be cited as the Education (London Residuary Body) (Transfer of Loans) Order 1992 and shall come into force on 1st April 1992.

(2) In this Order-

"the appropriate percentage" means, in relation to a council listed in column (1) of Schedule 1 to this Order, the percentage specified opposite thereto in whichever of column (2), (3) or (4) of that Schedule is appropriate to the loan in question; and

"the LRB" means the London Residuary Body.

Transfer of loans

2.-(1) On 1st April 1992 part of the liability of the LRB to the Public Works Loan Board in respect of the payment of interest and the repayment of principal outstanding immediately before that date attributable to the loans listed in Schedule 2 to this Order shall transfer to and fall to be discharged by the councils listed in Schedule 1 to this Order in the manner described in paragraphs (2) to (4) below.

(2) Each council shall be liable for the repayment of the appropriate percentage of principal outstanding in relation to each loan.

(3) Each council shall discharge that part of the liability apportioned to it at the time and in the manner applicable to the loan in question.

(4) Each council shall pay to the Public Works Loan Board interest on that part of the liability which falls to be discharged by it at the rate and time and in the manner applicable to the loan in question.

3. The rights of the LRB in respect of the loans referred to in article 2(1) above shall on 1st April 1992 vest jointly and severally in the LRB and in the councils there referred to.

Extinguishment of existing rights and liabilities, revocation and saving

4.-(1) Subject to paragraph (2) below, the rights and liabilities created by section 177(2) and (3) of the Education Reform Act 1988 and the Education (Inner London Education Authority) (Repayment of Loans) Order 1990(2) are extinguished and that Order is hereby revoked.

(2) Paragraph (1) above shall not have effect in relation to rights and liabilities-

(a)which accrued before 1st April 1992; and

(b)in respect of payments which fall to be made on 30th September 1992 in accordance with article 6(3) of the said Order.

Articles 1(2) and 2(1)

SCHEDULE 1TRANSFER OF LOANS

Article 2(1)

SCHEDULE 2PUBLIC WORKS LOAN BOARD LOANS

Explanatory Note

(This note is not part of the Order)

This Order transfers to specified inner London borough councils part of the London Residuary Body's liability to the Public Works Loan Board in respect of specified loans.

The Education (Inner London Education Authority) (Repayment of Loans) Order 1990, taken with section 177 of the Education Reform Act 1988, had provided that each inner London council (as therein defined) was deemed to have borrowed from the London Residuary Body ("the LRB") a sum determined in accordance with that Order. Payments from the inner London councils were used by the LRB to discharge its liabilities to the Public Works Loans Board inherited from the Inner London Education Authority. Now that this Order provides for the transfer of certain of the LRB's outstanding liabilities to the Board to the inner London borough councils that Order is no longer required and is revoked.