(1) The Secretary of State may make grants to any police and crime commissioner in respect of expenditure incurred (or to be incurred) by the commissioner at any time before the beginning of its first precepting year.
(2) Without prejudice to any other powers to borrow, a police and crime commissioner may borrow by way of temporary loan or overdraft from a bank or otherwise any sums which the commissioner may require for the purpose of meeting the commissioner's expenditure before the beginning of the commissioner's first precepting year.
(3) The sums borrowed by a commissioner under this section shall not exceed such amount as the Secretary of State may determine, and shall be repaid before the end of the commissioner's first precepting year.
(4) For the purposes of this section the “first precepting year” of a police and crime commissioner is the financial year in which revenue is first received by the commissioner as a result of a precept issued by the commissioner under Part I of the Local Government Finance Act 1992.