Atomic Energy Authority Act 1986
Atomic Energy AuthorityAct 1986
1986 CHAPTER 3
An Act to put the finances of the United Kingdom Atomic Energy Authority on a trading fund basis; and for connected purposes.
[19th February 1986]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
The Authority's finances
1 Commencing capital debt.
(1) The United Kingdom Atomic Energy Authority shall, in respect of their net assets on 1st April 1986, assume a debt due to the Secretary of State (their ‘commencing capital debt’) of such amount as the Secretary of State, after consulting the Authority, may with the approval of the Treasury specify by notice in writing.
(2) The commencing capital debt of the Authority shall be deemed to have been assumed by them on 1st April 1986 and a sum equal to the amount of that debt shall be deemed to have been issued to the Secretary of State out of the National Loans Fund on that date.
2 Borrowing powers.
(1) The Authority may borrow such sums as may be required for meeting the obligations and discharging the functions of the Authority or their subsidiaries—
(a ) in sterling from the Secretary of State, or
(b ) with the consent of the Secretary of State, or in accordance with a general authority given by him, in any currency from a person other than the Secretary of State.
(2) The Authority may borrow money from a wholly owned subsidiary of theirs without any consent or authority.
(3) The Authority shall exercise control over their subsidiaries so as to secure that no subsidiary borrows from a person other than the Authority or another subsidiary except with the consent of the Secretary of State or in accordance with a general authority given by him.
(4) The Secretary of State may give general authority for—
(a ) temporary borrowing, by way of overdraft or otherwise, and
(b ) borrowing by subsidiaries of the Authority.
(5) The Secretary of State shall not give his consent or authority under this section except with the approval of the Treasury.
(6) The Authority may not borrow money except in accordance with this section; but a person lending to the Authority is not prejudiced by a failure to comply with the requirements of this Act as to borrowing by the Authority.
3 Limit on borrowing.
(1) The aggregate amount outstanding by way of principal in respect of—
(a ) money borrowed by the Authority or a wholly owned subsidiary of theirs,
(b ) money borrowed for the repayment of which the Authority or a wholly owned subsidiary of theirs is a guarantor or surety,
(c ) the Authority's commencing capital debt, and
(d ) sums issued by the Treasury in fulfilment of guarantees under section 5 (guarantees of borrowing by Authority or their subsidiaries),
shall not exceed 150 million or such greater sum, not exceeding 200 million, as the Secretary of State may specify by order.
(2) Borrowing between the Authority and a wholly owned subsidiary of theirs, or between two such subsidiaries, shall not be taken into account for the purposes of subsection (1).
(3) If a body corporate ceases to be a wholly owned subsidiary of the Authority, the Secretary of State may, having regard to the extent to which the amounts taken into account for the purposes of subsection (1) were attributable to—
(a ) money borrowed by that body corporate, and
(b ) money borrowed for the repayment of which that body corporate is a guarantor or surety,
by order provide that subsection (1) shall have effect with the substitution for the amounts specified in that subsection, or in an order in force under that subsection, of such lower amounts as he considers appropriate.
(4) Where the Authority or a wholly owned subsidiary of theirs enter into a transaction which involves credit or other financial services being made available to them, the Secretary of State may by order provide—
(a ) that they shall be treated for the purposes of subsection (1) as having borrowed such amount as may be specified in the order, and
(b ) for determining how much of that amount is to be treated for the purposes of that subsection as outstanding at any time.
(5) The Secretary of State may, when he consents to borrowing in a currency other than sterling, or later, give directions as to the method of calculation, and the date to be taken, in determining for the purposes of subsection (1) the value in sterling of the amount outstanding.
(6) The Secretary of State shall not make an order under subsection (1) or give directions under subsection (5) except with the approval of the Treasury; and before giving directions under subsection (5) he shall consult the Authority.
(7) Orders under this section shall be made by statutory instrument, and—
(a ) an order shall not be made under subsection (1) unless a draft of it has been approved by a resolution of the House of Commons, and
(b ) an order under subsection (3) or (4) shall be subject to annulment in pursuance of a resolution of that House.
4 Loans from the Secretary of State.
(1) The Secretary of State may lend to the Authority any sums which they have power to borrow from him.
(2) The Authority's commencing capital debt and any loans made to the Authority under this section shall be repaid to the Secretary of State—
(a ) at such times and in such manner as he may direct, and
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