120 LOCAL AUTHORITY MORTGAGE SCHEME PDF 646 KB
To consider a report of the Executive Member for Economic Growth and Prosperity.
The Executive Member for Economic Growth and Prosperity submitted a report giving details of the operation of the first Local Authority Mortgage Scheme launched in May 2012, and seeking approval to set up a second scheme.
(1) That agreement be given to the establishment of a Local Authority Mortgage Scheme as per the criteria set out in the report:-
(i) To set a maximum limit for total indemnity for the scheme of £1 Million;
(ii) For the scheme to be open to all qualifying post codes within the Borough of Trafford;
(iii) For a maximum loan size of £190,000. The maximum indemnity value per property would be £40,000;
(iv) That the Council shall indemnify the Council’s Monitoring Officer in relation to any liability that she may personally incur to Lloyds TSB under the LAM scheme in relation to the provision of a legal opinion regarding the Council’s authority and capacity to i) to participate in the LAM scheme and ii) to enter into the necessary contractual documentation with Lloyds TSB;
(v) For the Council to enter into an indemnity deed with Lloyds TSB.
(2) That the following be recommended to Council:
i) the addition of £1 Million, in respect of the cash backed indemnities, to the 2013/14 Capital Programme;
ii) that additional borrowing be approved in the sum stated in the report and
iii) the changes to the prudential indicators as detailed in the report.
(3) That this be deemed to be an urgent decision and not subject to call in given the associated report to Council on 30th April.