The Hydrographic Office Trading Fund Order 1996

• Citation: S.I. 1996/773
• Sections: 5

Section 1 Citation and commencement

This Order may be cited as the Hydrographic Office Trading Fund Order 1996 and shall come into force on 1st April 1996.

Section 2 Establishment of the fund

As from 1st April 1996, for all the operations of the Ministry of Defence known as the Hydrographic Office, which operations are more particularly described in Schedule 1 to this Order, there shall be established a trading fund to be known as the Hydrographic Office Trading Fund (hereinafter referred to as “the fund”).

Section 3 Source of loans

The Secretary of State for Defence is hereby designated as the source of issues to the fund by way of loan.

Section 4 Assets, liabilities, reserves and public dividend capital

(1) The Crown assets and liabilities set out in Schedule 2 to this Order shall be appropriated as assets and liabilities of the fund.

(2) 5.1 per cent of the amount by which the values of the assets exceed the amounts of the liabilities shall be treated as a revaluation reserve in the accounts of the fund and the reserve so treated shall be maintained as a revaluation reserve.

(3) 47.3 per cent of the balance of

(a) the amount by which the values of the assets exceed the amounts of the liabilities, less

(b) the amount to be treated as a revaluation reserve in accordance with paragraph (2) above,

shall be treated as public dividend capital of the fund.

Section 5 Maximum borrowing etc.

The aggregate of the following shall not exceed £50,000,000

(a) the total outstanding at any given time in respect of amounts issued to the fund under section 2B of the Government Trading Funds Act 1973 (other than as originating debt), and

(b) the total at that time constituting public dividend capital issued to the fund under section 2A(2A) of that Act.