Decision details

To consider the report of the Cabinet Member for Resources seeking approval to enter into a new agreement for banking facilities, to include a set-off agreement. 

To approve the Council entering into a facilities arrangement to include a set-off agreement with Lloyds Bank plc and delegate authority to the Service Director, Finance and Commercialisation to sign any documents required.

Lloyds Bank PLC has seen a change in their processes in relation to the provision of Gross / Net overdraft facilities; and as such require to formally document the Bank’s right of set off for these facilities, which will include having the documentation signed by the Council, and this right of set-off will be included within the security part of the facility documentation.

If SCC do no enter into this agreement there could be a potential that our day to day banking facilities will cease resulting in payments not being able to be made when required and should there be a need for an overdraft, although not used to date, there would be significant costs incurred.