Limitations on Deductions

3.13  The Authority may not, in respect of any Payment Year, make Total Adjustments which are greater than the Service Payment payable by the Authority in respect of the relevant Payment Year.  [Adjustments which, but for this paragraph, could have been made by the Authority will be permanently disregarded for the purposes of this Schedule 21 (Payment Mechanism)].

3.14  Where the Total Adjustments which may be made by the Authority in or in respect of any Month exceed the amount of the Monthly Service Payment in respect of that Month, the excess shall be carried forward and applied for the benefit of the Authority in the next or any subsequent Month.  Such deductions will be treated as if they are made in respect of the Month in which they are so applied.