Local Government (Scotland) Act 1947

141 Adjustment of property and liabilities.

(1) Where any alteration of area has been made or is proposed to be made under this Part of this Act or under any enactment repealed by this Act, the local authorities concerned and any other public bodies concerned may make an agreement for the purpose of adjusting any property, income, debts, liabilities and expenses of the parties to the agreement (so far as affected by the alteration of area) and any financial relations between them, and with respect to any other matter or thing which may be required for the proper carrying into effect of the alteration and the settlement of difficulties arising therefrom.

(2) The agreement may provide for the transfer or retention of any property, debts or liabilities with or without conditions, for the joint use of any property and for payment by either party to the agreement in respect of property, debts and liabilities so transferred or retained or of such joint use, and in respect of the remuneration or compensation payable to any officer or person and that by way of a capital sum or of an annual payment for a period of years.

(3) In default of agreement as to any matter requiring adjustment, such adjustment may, at any time within two years from the date on which the alteration of area takes effect and whether the alteration was made by order of the Secretary of State or by deliverance of the sheriff or otherwise under this Part-of this Act, be referred to the Secretary of State or to an arbiter appointed by the Secretary of State, and the decision of the Secretary of State or the arbiter, as the case may be, shall be final.

(4) Any sum required to be paid for the purposes of. any adjustment under this section shall be. defrayed by a local authority or any other public body in such manner as may be specified in the agreement or decision and, failing the agreement or decision so specifying, in such manner as the local authority or other public body making the payment may determine.

(5) Any capital sum received by a local authority in respect of an adjustment under this section shall be treated as capital and shall be applied with the sanction of the Secretary of State in the repayment of capital debt or for any other purpose for which capital money may be applied.