(1)Where at any time a locality ceases to be a development area, intermediate area or derelict land clearance area, the fact that it is no longer such an area shall not prejudice—
(a)the completion by the Secretary of State of buildings or works begun before that time in the locality under section 5 or 8 of this Act, or the exercise by the Secretary of State in relation to land in that locality of his powers under either of those sections so far as may be necessary for the purpose of fulfilling any agreement entered into by the Secretary of State before that time;
(b)the making under this Act of any grant or loan or the giving of assistance under section 4 of this Act in any case in which an application for the grant, loan or assistance was received by the Secretary of State (or the appropriate Minister for the purpose of section 8) before that time; or
(c)the continued operation of any agreement relating to any such grant, loan or assistance as is mentioned in paragraph (b) of this section or of any other agreement relating to grants or loans entered into under this Act.
(2)In subsection (1) of this section " grant" does not include a grant under section 3 of this Act but where at any time a development area ceases to be such without becoming an intermediate area, or an intermediate area ceases to be such without becoming a development area, it shall be treated as continuing to be a development area or, as the case may be, intermediate area—
(a)for the purpose of enabling grants to be made under that section on applications received by the Secretary of State before that time, or in respect of expenditure any part of which was incurred by the applicant under a contract entered into before that time; and
(b)for the purpose of the continued operation of any agreement relating to any grant under that section.
In this subsection, references to development areas and intermediate areas include references to parts of development areas and intermediate areas.