(1) If a local authority is named as the issuer or a promoter in any registered prospectus within the meaning of the Securities Act 1978, that prospectus must, unless the securities being offered pursuant to the prospectus are expressly guaranteed by the Crown under the Public Finance Act 1989, contain a statement that the securities being offered pursuant to the prospectus are not guaranteed by the Crown.
(2) If a local authority enters into any loan agreement or incidental arrangement, that agreement or arrangement must include a statement that the loan or other liability under the incidental arrangement is not guaranteed by the Crown.
(3) Subsection (2) does not apply in relation to liability for any sum of a kind described in section 49 of the Public Finance Act 1989.
Compare: 1974 No 66 s 122ZP
Section 122(3): amended, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).