12 Power to borrow from permanent endowment
Charities Act 2022 (2022 c 6) | Legislation

12  Power to borrow from permanent endowment

(1)     The Charities Act 2011 is amended as follows.

(2)     After section 284 insert—

“Power to borrow from permanent endowment

284A Power to borrow from permanent endowment: general

(1)     This section applies to any available endowment fund of a charity.

(2)     The charity trustees may resolve to borrow an amount, not exceeding the permitted amount, from the available endowment fund if they are satisfied—

(a)     that it is expedient for the amount to be borrowed, in the light of the purposes set out in the trusts to which the fund is subject and the purposes of the charity, and

(b)     that arrangements are in place for the amount to be repaid within 20 years of being borrowed.

(3)     Any amount borrowed in accordance with subsection (2) no longer forms part of the available endowment fund and, as a result, is freed from the restrictions with respect to the expenditure of capital that applied to it when it was comprised in that fund.

(4)     An amount borrowed in accordance with subsection (2) may not be used to repay (in whole or in part) any amount previously borrowed from permanent endowment (whether the previous

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