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(1)Any funds held in trust by a local authority or by any members of the authority for the benefit of the whole area of the authority or the inhabitants thereof (including, in the case of a burgh, the common good thereof), unless the trust deed or other document regulating the purposes of the trust otherwise specifically provides, shall—
(a)on an alteration of boundary by the inclusion of an added area under this Part of this Act, apply to the whole area of the authority including the added area in like manner as they applied to the area of the authority before the alteration of boundary; and
(b)on an alteration of a boundary involving an area ceasing to be part of the area of a local authority under this Part of this Act, extend only to the area of the authority remaining after the alteration has been given effect to.
(2)Nothing in this section shall apply to any educational endowment.
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