Paragraph 7 E1

England

(1)

Where, on the application of the governing body of a voluntary aided school and after consulting persons representing the governing body, the Secretary of State—

(a)

is satisfied that the governing body’s share of any F1initial expenditure required in connection with the school premises will involve capital expenditure, and

(b)

having regard to all the circumstances of the case, considers that that F2capital expenditure ought properly to be met by borrowing,

he may make a loan to the governing body for the purpose of helping them meet that expenditure.

(2)

The amount, rate of interest and other terms and conditions applicable to the loan shall be such as may be specified in an agreement made between the Secretary of State and the governing body with the consent of the Treasury.

(3)

For the purposes of this paragraph F3“initial expenditure” is expenditure to be incurred in providing—

(a)

a site or F4. . . buildings for a voluntary aided school in connection with—

(i)

the implementation of any proposals for a prescribed alteration to the school published under section 28, or

(ii)

the transfer of the school to a new site, or

(b)

a site or F5. . . buildings for a new voluntary aided school,

being F6expenditure in respect of which grants may be paid under paragraph 5.

(4)

For the purposes of this paragraph the governing body’s share of any F7initial expenditure shall be taken to be so much of the F8expenditure as remains to be borne by the governing body after taking into account the amount of any grant under paragraph 5 that may be paid or payable in respect of them.

(5)

The preceding provisions of this paragraph shall apply for the purpose of enabling loans to be made to a relevant body (within the meaning of paragraph 5) in respect of F9expenditure incurred by that body on behalf of the governing body as it applies to expenditure incurred by the governing body; and in those provisions, as they apply in relation to a new voluntary aided school, references to the governing body are to the promoters.

(6)

Paragraph 3(3) of Schedule 10 (consent to borrowing) does not apply to any borrowing by a governing body under this paragraph.

Annotations

Textual amendments

F1: Words in Sch. 3 para. 7(1)(a) substituted (E.) (1.4.2002) by The Regulatory Reform (Voluntary Aided Schools Liabilities and Funding) (England) Order 2002 (S.I. 2002/906), art. 10(a)
F2: Words in Sch. 3 para. 7(1)(b) substituted (E.) (1.4.2002) by The Regulatory Reform (Voluntary Aided Schools Liabilities and Funding) (England) Order 2002 (S.I. 2002/906), art. 10(b)
F3: Words in Sch. 3 para. 7(3) substituted (E.) (1.4.2002) by The Regulatory Reform (Voluntary Aided Schools Liabilities and Funding) (England) Order 2002 (S.I. 2002/906), art. 10(c)
F4: Word in Sch. 3 para. 7(3)(a) omitted (E.) (1.4.2002) by virtue of The Regulatory Reform (Voluntary Aided Schools Liabilities and Funding) (England) Order 2002 (S.I. 2002/906), art. 10(d)
F5: Word in Sch. 3 para. 7(3)(b) omitted (E.) (1.4.2002) by virtue of The Regulatory Reform (Voluntary Aided Schools Liabilities and Funding) (England) Order 2002 (S.I. 2002/906), art. 10(d)
F6: Word in Sch. 3 para. 7(3) substituted (E.) (1.4.2002) by The Regulatory Reform (Voluntary Aided Schools Liabilities and Funding) (England) Order 2002 (S.I. 2002/906), art. 10(c)
F7: Words in Sch. 3 para. 7(4) substituted (E.) (1.4.2002) by The Regulatory Reform (Voluntary Aided Schools Liabilities and Funding) (England) Order 2002 (S.I. 2002/906), art. 10(e)(i)
F8: Word in Sch. 3 para. 7(4) substituted (E.) (1.4.2002) by The Regulatory Reform (Voluntary Aided Schools Liabilities and Funding) (England) Order 2002 (S.I. 2002/906), art. 10(e)(ii)
F9: Words in Sch. 3 para. 7(5) substituted (E.) (1.4.2002) by The Regulatory Reform (Voluntary Aided Schools Liabilities and Funding) (England) Order 2002 (S.I. 2002/906), art. 10(f)

Extent

E1: This version of this provision extends to England only; a separate version has been created for Wales.

Notes on Loans by Secretary of State in respect of initial expensesexpenditure

Textual amendments

F1: Cross-heading preceding Sch. 3 para. 7: "expenditure" substituted for "expenses" (E.) (1.4.2002) by The Regulatory Reform (Voluntary Aided Schools Liabilities and Funding) (England) Order 2002 (S.I. 2002/906), art. 9