LOCAL GOVERNMENT, ENGLAND AND WALES Citation, commencement and interpretation 1 1 This Order may be cited as the London Government Reorganisation (Transfer of Loans) Order 1988 and shall come into force on 1st April 1988. 2 In this Order — “the appropriate percentage” means the percentage indicated in Schedule 1 to this Order in relation to the council in question; “the Residuary Body” means the London Residuary Body. Transfer of loans 2 2 On 1st April 1988 the liability of the Residuary Body 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 shall fall to be discharged by the councils listed in Schedule 1 in the manner described in paragraphs (2) to (4). 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 Residuary Body in respect of the loans referred to in article 2(1) shall on 1st April 1988 vest jointly and severally in the councils there referred to. Application of general provisions relating to borrowing 4 1 Subject to paragraph (2), paragraphs 2 to 8, 11 and 20 of Schedule 13 to the Local Government Act 1972 1972 c. 70 . shall apply as if the amount of that part of the liability transferred to each council by this Order which is attributable to the repayment of the principal were money borrowed by that council under paragraph 1(b) of that Schedule. 2 Paragraphs 7 and 8 of that Schedule (accounting requirements and power to borrow during the fixed period for repaying loans) shall apply to the amount referred to in paragraph (1) with the substitution for the words “the fixed period” of the words “the period of 33 years commencing with the financial year beginning 1st April 1988”. Extinguishment of existing rights and liabilities, revocation and saving and other provisions 5 1 Subject to paragraph (2), the rights and liabilities created by the provisions of the transfer orders mentioned in paragraph 3 of Part I of Schedule 2 to the Local Government Reorganisation (Greater London Council Transferred Housing and Nomination Rights) Order 1986 (“paragraph 3”) (provisions vesting in the Residuary Body the right to money which, but for the Local Government Act 1985, would have become due to the Greater London Council’s consolidated loans fund) and which were saved by article 3 of that Order shall cease to exist; and, subject as aforesaid, those provisions (which are listed in Schedule 3 to this Order) and paragraph 3 are revoked. 2 Paragraph 3 shall continue to have effect in relation to a transferee authority’s liabilities and entitlements— a which accrued before 1st April 1988; and b in respect of payments or receipts which fall to be made or received on 30th September 1988 in accordance with paragraph 3(4)(d). Nicholas Ridley Secretary of State for the Environment 16th February 1988