Local Authorities (Financial Provisions) Act, 1921

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Power to appoint receiver where metropolitan borough council fails to meet precept.

38 & 39 Vict. c. 83.

2.—(1) Where, in pursuance of a percept issued by an authority either before or after the passing of this Act, any sum is payable, directly or indirectly, by the council of a metropolitan borough to that authority, and the Minister of Health is satisfied that the council have refused or neglected to raise the amount by a rate, or that, having raised the amount by a rate, the council have refused or neglected to pay the amouth due under the precept, the Minister may issue a certificate to that effect, and thereupon the authority shall have the like power of applying for the appointment of a receiver, and a receiver may upon such applicaton, be appointed in like manner and, when appointed, have the like power as if the authority were a secured creditor of the council for the sum due under the precept with interest thereon at the rate of six per centum per annum from the date when the amount became payable under the precept, and that sum and interest were due under a security issued under the Local Loans Act, 1872, chargint the same on the rates leviable by and on all other property of the council, and the conditions under which a receiver may, in such a case, be appointed under section twelve of that Act were fulfilled, and that section shall apply accordingly:

Provided that the application may be made by the Minister instead of by the authority if the Minister thinks fit.

(2) Where an authority have issued a precept to a board of guardians in the administrative county of London and the Minister is satisfied that the board of guardians have failed to include the amount of the precept in any precept issued by them to a metropolitan borough council, the Minister may, by order, cancel the precept to the guardians and authorise the authority to issue a precept to the council for the amount due under the precept to the guardians, and in that case the amount specified in the precept to the council shall become payable to the authority in the same manner as it would have become payable to the guardians if the precept had been issued by them.

(3) The power of the receiver appointed under this section to levy a rate may be exercised notwithstanding that the expenses of the authority to meet which the rate is made were incurred in a period prior to that in which the rate is made, and notwithstanding that the council may have already made and levied a rate for such expenses.

(4) Where, in pursuance of a precept issued by an authority either before or after the passing of this Act, any sum is payable, directly or indirectly, by the council of a metropolitan borough to that authority, the authority may set off any sum payable to the council by the authority against the sum payable by the council in pursuance of the precept, without prejudice to proceedings for the recovery of the balance (if any) of the last-named sum under the provisions of this section.

(5) For the purposes of this section—

the expression “authority” means any body or person having power to issue a precept payable either directly or indirectly out of the general rate leviable by a metropolitan borough council;

the expression “precept” includes a warrant or contribution order.

(6) The powers conferred by this section shall be in addition to and not in derogation of any other powers of enforcing compliance with a precept issued by an authority.