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(1)The Secretary of State may make grants to the funding agencies of such amounts and subject to such terms and conditions as he may determine.
(2)The terms and conditions subject to which grants are made by the Secretary of State to a funding agency—
(a)may in particular impose requirements to be complied with in respect of every institution, or every institution falling within a class or description specified in the terms and conditions, being requirements to be complied with in the case of any institution to which the requirements apply before financial support of any amount or description so specified is provided by the agency in respect of activities carried on by the institution, but
(b)shall not otherwise relate to the provision of financial support by the agency in respect of activities carried on by any particular institution or institutions.
(3)Such terms and conditions may not be framed by reference—
(a)to particular courses of study or programmes of research (including the contents of such courses or programmes and the manner in which they are taught, supervised or assessed), or
(b)to criteria for the selection and appointment of academic staff and for the admission of students.
(4)Such terms and conditions may in particular—
(a)enable the Secretary of State to require the repayment, in whole or in part, of sums paid by him if any of the terms and conditions subject to which the sums were paid is not complied with, and
(b)require the payment of interest in respect of any period during which a sum due to the Secretary of State in accordance with any of the terms and conditions remains unpaid.
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