Regulation 2 Loans to new grant–maintained schools for capital expenditure

proposals under section 49 of the Act for establishing a grant–maintained school have been approved under section 51 of the Act;

a grant is made under section 53(2) of the Act in respect of the provision of a site or buildings (or both) for the school; and

in the opinion of the appropriate authority, having regard to all the circumstances of the case and, in particular, the educational and financial viability of the school, part of the expenditure incurred or to be incurred by the governing body in respect of which that grant was made ought properly to be met by borrowing,

that it be repaid by periodical instalments specified in the agreement within a period so specified not exceeding thirty years; and

that repayment be guaranteed by the promoters, or by such other person as the appropriate authority may approve and in such manner as the appropriate authority may require,