Section 2 Existing loans.

(1)

Any repayment of principal or payment of interest in respect of a loan made by the Treasury under either of the previous enactments and not repaid before the commencement of this Act shall, subject to subsection (2) below, be made to the Secretary of State.

(2)

The terms on which a loan such as is mentioned in subsection (1) above shall be repaid, and interest on it paid, are either—

(a)

the terms which have effect immediately before the commencement of this Act; or

(b)

such other terms as the Secretary of State may with the approval of the Treasury from time to time determine.

(3)

Any sums received by the Secretary of State in pursuance of subsection (1) above shall be paid into the National Loans Fund.