If, immediately before the appointed day, there are in the hands of the Postmaster General any sums of money paid to him on contracts entered into under Part II of the [1929 c. 29.] Government Annuities Act 1929 or received by him from the National Debt Commissioners for the payment of moneys becoming due under contracts so entered into, the Post Office shall, on that day, assume a liability to pay equivalent sums to the National Debt Commissioners.

If, immediately before the appointed day, any sums of money are owed by the National Debt Commissioners to the Postmaster General for the purpose of reimbursing him sums paid by him in satisfaction of payments due under contracts entered into under the said Part II, those Commissioners shall, on that day, assume a liability to pay to the Post Office sums equivalent to those owed; and the Treasury shall, for the purpose of enabling those Commissioners to make payments in or towards discharge of this liability, in so far as it is referable to contracts for the grant of immediate savings bank annuities, provide them with the necessary sums out of the National Loans Fund with recourse to the Consolidated Fund, and shall, for the purpose of enabling them to make payments in discharge of this liability, in so far as it is not so referable, provide them with the necessary sums out of the Consolidated Fund.

As soon as practicable after the appointed day, the National Debt Commissioners shall pay to the Post Office, out of moneys provided by Parliament, a sum equal to the difference between the aggregate of the sums paid by them in pursuance of subsection (7) of section 19 of the [1961 c. 15.] Post Office Act 1961 (payment of the Postmaster General for work done by him in the execution of Part II of the Government Annuities Act 1929) and the amount agreed between the Treasury and the Post Office to be the aggregate of the sums that, had this Act not passed, would have been paid by the Commissioners in pursuance of that subsection to the Postmaster General in respect of the period beginning with the day on which the first-mentioned Act came into operation and ending with the day immediately preceding the appointed day.