Sections 26-28: Provisions relating more than one scheme Section 27: Treasury Loans
This section provides that, in the event an authorised reclaim fund is, or looks likely to be, unable to meet its reclaim liabilities, the Treasury can provide RFL with a loan to cover these liabilities out of money provided by Parliament. The loan's purpose is to support an authorised reclaim fund until it is able to cover these costs with its own income. At this point, the Government would look to recoup its costs. The contingent liability will remain in place throughout the operation of an authorised reclaim fund. The Treasury will note the liability in its accounts.