112Interpretation

1. In this subpart, unless the context otherwise requires,—

   asset of a local authority, in relation to a charge or to charging, includes any revenue, rate, or other right or entitlement of the local authority capable of being subjected to a charge

   borrowing—and borrow has a corresponding meaning

   1. means the incurring by any means of debt to raise money; and
   2. includes the incurring of debt—
      1. under any contract or arrangement for hire purchase, deferred payment, instalment payment, sale and lease back or buy back, financial lease, loan, overdraft, or other arrangement for obtaining debt finance; or
      2. by the drawing, acceptance, making, endorsement, issue, or sale of bills of exchange, promissory notes, and other negotiable instruments and debt securities; or
      3. by the use, for any purpose, of funds received or invested by the local authority for any other purpose if the local authority has resolved to repay, with or without interest, the funds used; but
   3. does not include debt incurred in connection with the hire purchase of goods, the deferred purchase of goods or services, or the giving of credit for the purchase of goods or services if—
      1. the period for which the indebtedness is outstanding is less than 91 days and the indebtedness is not incurred again promptly after payment; or
      2. the goods or services are obtained in the ordinary course of the local authority's performance of its lawful responsibilities, on terms and conditions available generally to parties of equivalent credit worthiness, for amounts not exceeding in aggregate an amount—
         1. determined by resolution of the local authority as not being so significant as to require specific authorisation; or
         2. recorded for the purposes of this subparagraph in the then current borrowing management policy of the local authority—

   charge includes a mortgage, a floating charge, and any other non-possessory security interest deliberately created by the local authority concerned

   incidental arrangement means—and includes the creation of a charge

   1. a contract or arrangement for the management, reduction, sharing, limiting, assumption, offset, or hedging of financial risks and liabilities in relation to any investment or investments or any loan or loans or other incidental arrangement, whether or not that contract or arrangement involves—
      1. the expenditure, borrowing, or lending of money; or
      2. the local authority undertaking to make payments in exchange for another person undertaking to make payments to the local authority; or
      3. the creation or acquisition or disposal of any property or right; or
   2. a contract or arrangement with any bank, financial institution, or other person providing for any person to act as underwriter, broker, indemnifier, guarantor, accommodation party, manager, dealer, trustee, registrar, or paying, fiscal, or other agent for, or in connection with, any loan or investment—

   loan includes the amounts raised or indebtedness incurred, as the context may require, as a result of borrowing

   protected transaction means—

   1. any deed, agreement, right, or obligation constituting, relating to, or for the purpose of, any borrowing or incidental arrangement; and
   2. includes—
      1. any charge, guarantee, or security for the payment of any amount (including any loan) payable in relation to, or for the purpose of, any borrowing or incidental arrangement; and
      2. any conveyance or transfer of any property in relation to, or for the purpose of, any borrowing or incidental arrangement.

Compare

• 1974 No 66 ss 122Z, 122ZB, 122ZG(1)