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(1)Where in the standard year a special or parish rate is levied in any area within a rural district, the loss on account of that rate shall be ascertained in accordance with the rules set out in Part I of the Fourth Schedule to this Act, and—
(a)the sum to be set aside out of the county apportionment in respect of the rural district and payable to the council thereof shall in respect of each year during the first four fixed grant periods be increased by a sum equal to the appropriate percentage of the loss of the area on account of the special or parish rate; and
(b)there shall be payable to the council of the district by the council of the county, in each year during the first and second fixed grant periods a sum equal to twenty-five per cent. of that loss, and thereafter such sum as the council of the county may determine.
(2)Any sum paid to a rural district council under this section shall be applied by the council to such purposes and in such manner as may be prescribed.
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