(1)The Secretary of State may—
(a)make to the Authority out of money provided by Parliament grants of such amounts as the Secretary of State thinks fit;
(b)give the Authority a direction providing that the whole or part of a grant made in pursuance of the preceding paragraph is not to be used by the Authority otherwise than for the purposes of such of the Authority's functions as are specified in the direction.
(2)The Secretary of State may, with the approval of the Treasury, lend to the Authority any sums which the Authority has power to borrow by virtue of section 8(2) of this Act.
(3)Any loan which the Secretary of State makes in pursuance of the preceding subsection shall be repaid to him at such times and by such methods, and interest on the loan shall be paid to him at such rates and at such times, as the Secretary of State may with the approval of the Treasury from time to time determine.
(4)The Treasury may issue out of the National Loans Fund to the Secretary of State such sums as are necessary to enable him to make loans in pursuance of subsection (2) of this section ; and any sums received by the Secretary of State in pursuance of the preceding subsection shall be paid into that Fund.