LOCAL GOVERNMENT, ENGLAND AND WALES 1 This Order may be cited as the Passenger Transport Executives (Capital Finance) (Amendment) Order 1992 and shall come into force on 30th March 1992. 2 The Passenger Transport Executives (Capital Finance) Order 1990 shall be amended as follows: 1 In paragraph (5) of article 2 for the word “In” at the beginning there shall be substituted the words “Subject to paragraphs (6) and (7) below, in”. 2 After paragraph (5) of article 2 there shall be added the following paragraphs— 6 Liabilities shown in the balance sheet of an Executive which comprise current liabilities shall be included in the total of the liabilities of the Executive for the purpose of paragraph (5)(a) above and excluded from the total of current liabilities of the Executive for the purpose of paragraph (5)(b) above to the extent that they include any current liability which, in accordance with a determination of the relevant Authority referring to that liability and made no later than 30th September in the following financial year, is not to be set against the current assets. 7 Liabilities shown in the balance sheet of an Executive which comprise current liabilities shall be included in the total of the liabilities of the Executive for the purpose of paragraph 5(a) above and excluded from the total of current liabilities of the Executive for the purpose of paragraph (5)(b) above where they were shown as liabilities of the Executive in the balance sheet for the preceding financial year but did not then comprise current liabilities. 3 For the existing paragraph (6) there shall be substituted the following— 8 In this article and in article 5— a “lease” does not include any lease of which the lessor is the relevant Authority, and b “liabilities” do not include— i any provisions for pensions and similar obligations, ii any provisions for taxation, or iii any liabilities owed to the relevant Authority, and for this purpose any reserves or deferred capital grants shown in the balance sheet of an Executive shall be treated as liabilities owed to the relevant Authority. 4 In paragraph (8) of article 3 for the words “31st May” there shall be substituted the words “30th September”. 5 After paragraph (8) of article 3 there shall be added the following paragraph— 9 Nothing in this article shall require credit cover to be available for the financial year ending 31st March 1992 in respect of that part of any additional liabilities calculated under article 2(3) above which comprises a borrowing, not being a short term borrowing, incurred on or after 1st April 1991 and used for the purpose of meeting any current liability included in the calculation of relevant liabilities on the relevant date in the financial year ending 31st March 1991 if that current liability, at the time it was incurred, was either— a a liability which was treated in accordance with section 82 of the Local Government, Planning and Land Act 1980 as a liability of the relevant Authority and was incurred for meeting prescribed expenditure within the meaning of Part VIII of that Act, or b incurred for the purpose of meeting a liability referred to in sub-paragraph (a) above. 6 In paragraph (1) of article 5 for the words “article 2(6)” there shall be substituted the words “article 2(8)”. Signed by authority of the Secretary of State for Transport Roger Freeman Minister of State, Department of Transport 26th February 1992