LOCAL GOVERNMENT, ENGLAND AND WALES Citation, commencement and application 1 These Regulations may be cited as the Collection Fund (Wales) Regulations 1989 and shall come into force on 18th December 1989. They apply to Wales only. Interpretation 2 In these Regulations— “ the Act ” means the Local Government Finance Act 1988; “charging authority” means a Welsh charging authority; “the county precepting authority”, in relation to a charging authority, means the county council which has power to issue a precept to that charging authority; “liabilities” means— the liability of a charging authority to pay anything from its collection fund in respect of any precept issued under the Act, after taking into account any amount credited against that liability under section 71(6) of the Act, and the liability of such an authority to transfer anything from its collection fund under section 97 of the Act; “relevant community council”, in relation to a charging authority, means a community council which has power to issue a precept to that charging authority; “relevant precepting authority”, in relation to a charging authority, means the county precepting authority, and each relevant community council; “relevant principal authority”, in relation to a charging authority, means the county precepting authority and that charging authority; “schedule of instalments” means a schedule prepared by a charging authority with respect to the times for and the number and amounts of payments or transfers from its collection fund in respect of its liabilities. Discharge of liabilities 3 1 A charging authority shall in accordance with its schedule of instalments in relation to a financial year pay from its collection fund to its relevant precepting authorities, and transfer from its collection fund to its general fund, such amount as will meet its liabilities for that year. 2 The requirement in paragraph (1) to make payments or transfers in accordance with a schedule of instalments does not apply where— a a substitute precept or calculation has been issued or made in relation to a financial year, and b that substitute precept or calculation has been issued or made on or after the day of the final instalment to be paid or transferred in accordance with the schedule of instalments in that financial year. 3 An amount to be paid or transferred by a charging authority in respect of the amount of its liabilities for a financial year shall be paid or transferred— a if the precept or calculation in respect of which that amount is being paid or transferred was issued or made before the end of that financial year, in that financial year, (b) in any other case, as soon as is reasonably practicable after the issue of that precept or making of that calculation. 4 An amount paid or transferred by a charging authority in respect of the amount of its liabilities for a financial year, whether or not paid or transferred in accordance with a schedule of instalments, shall be treated as discharging those liabilities to the extent of the payment or transfer. 5 For the purposes of paragraph (4), an amount paid or transferred which— a was treated in accordance with that paragraph as discharging a charging authority’s liabilities, but which (b) was subsequently repaid or credited by the relevant precepting authority concerned under section 71(6) of the Act, or transferred under regulation 9, shall, to the extent of the amount so repaid or credited, or transferred under regulation 9, cease to be treated as discharging those liabilities. 6 The references in paragraphs (1) and (2) to an authority’s schedule of instalments are references to the schedule of instalments determined by the authority in accordance with regulation 4, or where the authority has amended its schedule in accordance with regulation 6, to its schedule of instalments as it currently has effect. Schedules of instalments 4 1 A charging authority shall determine a schedule of instalments in relation to each financial year beginning in or after 1990. 2 A charging authority shall determine a schedule of instalments under paragraph (1) before 31st January in the financial year preceding that to which the schedule will relate. 3 A charging authority shall determine a schedule of instalments in accordance with the rules prescribed in Schedule 1 to these Regulations. 5 1 A charging authority shall, on or before 31st December in the financial year preceding that to which the schedule of instalments will relate, inform each relevant precepting authority of the schedule of instalments which it proposes to determine under regulation 4. 2 A charging authority shall, on or before 31st January in the financial year preceding that to which the schedule of instalments will relate, inform each relevant precepting authority of the schedule of instalments which it has determined under regulation 4. 3 A charging authority shall not determine a schedule of instalments under regulation 4 within 21 days of informing each relevant precepting authority under paragraph (1) of the schedule of instalments which it proposes to determine. Amendment of schedules of instalments for principal authorities 6 1 A charging authority may, with the agreement of the county precepting authority, from time to time amend a schedule of instalments insofar as it relates to future payments, and any such amendment shall have effect from such time as is specified in the amendment. 2 The power under paragraph (1) to amend a schedule of instalments does not extend to the amendment of any provision insofar as it relates to relevant community councils. 3 An amended schedule of instalments shall satisfy the requirements of paragraphs 1 to 5 of Schedule 1 to these Regulations. Interest on amount of instalments 7 1 A charging authority shall pay interest from its collection fund to a relevant precepting authority in respect of any amount which— a has become payable to that precepting authority in accordance with a schedule of instalments, but b has not been so paid. 2 Interest shall be payable under paragraph (1) on the amount outstanding for every day of the period beginning with the day on which the amount was due to be paid and ending with the day before the day on which it is paid. 8 1 Interest payable under regulation 7 in respect of an amount outstanding shall be calculated at the rate which is 2 per cent above the highest base rate quoted by members of the Committee of London and Scottish Bankers at any time in the period for which that interest is payable. 2 The interest shall be paid at the same time as the amount outstanding is paid. Calculations under section 95(4) of the Act 9 Where— a a charging authority has made a substitute calculation under section 95(4) of the Act in relation to a financial year, and b an amount transferred under section 97 of the Act from that authority’s collection fund to its general fund in relation to that financial year would not have been so transferred had the result of the immediately preceding calculation in relation to that year been the same as that of the substitute calculation, that authority shall, as soon as is reasonably practicable after making that substitute calculation, transfer from its general fund to its collection fund the amount which would not have been so transferred. Holdings and investments 10 1 Any sum paid into a charging authority’s collection fund which is not immediately required for the purpose of making payments or transfers from that fund shall be— a invested in a prescribed investment; b held in cash; or c transferred to the charging authority’s general fund. 2 Any sum transferred under paragraph (1) from an authority’s collection fund to its general fund shall be— a invested in a prescribed investment; b held in cash; or c used for the discharge of the authority’s functions. 3 A prescribed investment is an investment prescribed in Schedule 2 to these Regulations. 11 1 Where a sum has been transferred to its general fund under regulation 10(1), a charging authority shall— a immediately retransfer the sum if such a retransfer is required to enable the authority to meet payments or transfers from its collection fund, or b otherwise retransfer the sum as and when it thinks fit. 2 Where a sum is retransferred under paragraph (1) there shall be transferred with it an additional amount representing interest on such sum calculated in accordance with regulation 12. 12 Interest on the sum retransferred shall be calculated for the purposes of regulation 11(2), for the period beginning with the day of its transfer from the collection fund under regulation 10 and ending with the day before the day on which the retransfer is made under regulation 11, at the 7 day London Interbank Offer Rate having effect immediately before the end of the day on which the transfer from the collection fund was made.