2(1)A local authority shall not make a rehabilitation order relating to land subject to a compulsory purchase order unless they are satisfied that, after the rehabilitation order comes into force, they can effectively fulfil their duties under Part III of the Act of 1957 as regards the remaining land subject to the compulsory purchase order.
(2)Subject to sub-paragraph (1) above, a rehabilitation order may be made notwithstanding that the effect of the order in excluding any building from a clearance area is to sever that area into two or more separate and distinct areas, and in any such case the provisions of Part III of the Act of 1957 relating to the effect of a compulsory purchase order when confirmed, and to the proceedings to be taken after confirmation of the order, shall apply as if those areas formed one clearance area.
(3)In exercising his power under this Schedule of confirming a rehabilitation order subject to modifications, the Secretary of State shall have regard to the considerations in sub-paragraphs (1) and (2) above.