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Contributions by local authorities to approved companies.
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3.—(1) Subject to the provisions of this section, a local authority may, in any local financial year, enter into an agreement (in this Act referred to as a local contribution agreement) with an approved company to pay to such company, in respect of such local financial year or the next ensuing local financial year, or in respect of each of a specified number (not exceeding five) of consecutive local financial years, commencing with such first mentioned local financial year or the next ensuing local financial year, a specified sum (in this Act referred to as a local contribution).
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(2) Subject to the provisions of this section, a local authority may, in any local financial year, enter into any number of local contribution agreements with the same approved company or with different approved companies.
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(3) A local authority shall not enter into a local contribution agreement to pay a local contribution in respect of any local financial year, if the effect of entering into such agreement would be that the total amount agreed to be paid by way of local contribution by such local authority in respect of such local financial year would exceed—
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(a) where such local authority is the council of a county or county borough a sum equal to the amount of a rate of one penny in the pound on the rateable value of such county or county borough at the time such agreement is executed; or
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(b) where such local authority is the council of a borough, other than a county borough, or an urban district or the commissioners of a town, a sum equal to the amount of a rate of threepence in the pound on the rateable value of such borough, urban district or town at the time such agreement is executed;
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and any local contribution agreement entered into in contravention of the foregoing provisions of this sub-section shall be void and of no effect.
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(4) Every local contribution payable in respect of a local financial year shall be expressed in the local contribution agreement under which it is payable to be payable and shall be payable in four equal quarterly instalments, on the 30th day of June, the 30th day of September, the 31st day of December and the 31st day of March in such local financial year.
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(5) Where an approved company ceases to be an approved company, every local contribution payable to such company in respect of any period commencing on or after the date on which such company ceases to be an approved company shall cease to be payable, and for the purposes of this sub-section every local contribution shall be considered as accruing from day to day and shall be apportionable in respect of time accordingly.
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(6) The receipt of an approved company for any moneys paid to it by a local authority under a local contribution agreement shall be a good discharge to such local authority.
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(7) The benefit of a local contribution agreement shall not be assigned unless all the following conditions are complied with, that is to say:—
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(a) that such assignment is to an approved company;
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(b) that the Minister consents to such assignment;
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(c) that such consent is endorsed on the document effecting such assignment.
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(8) All moneys received by an approved company under a local contribution agreement shall be expended by such company on such objects and in such manner as may be approved by the Minister and not otherwise.
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