3.—(1) On the first appointed day the legal aid fund (“the Old Fund”) maintained by the Law Society under Article 19 of the 1981 Order shall be wound up.
(2) If, as at the first appointed day, after taking account of all receipts and expenses of the Law Society attributable to its functions under the 1981 Order, there is in relation to the Old Fund any surplus or deficit—
(a)such surplus shall be paid by the Law Society to the Lord Chancellor; and
(b)such deficit shall be made up by payment to the Law Society by the Lord Chancellor of the amount of the deficit.
(3) The Law Society shall, as soon as possible after the first appointed day, prepare a report in accordance with Article 18(8) of the 1981 Order—
(a)in relation to the last financial year ending before the first appointed day (if it has not done so before then), and
(b)in relation to the period between the end of that financial year and the first appointed day (as if that period were a financial year).
(4) The Law Society shall, as soon as possible after the first appointed day, prepare a statement of accounts in accordance with Article 20 of the 1981 Order—
(a)in relation to the last financial year ending before the first appointed day (if it has not done so before then), and
(b)in relation to the period between the end of that financial year and the first appointed day (as if that period were a financial year).
(5) Paragraphs (2) to (5) of Article 20 of the 1981 Order shall, on and after the first appointed day, apply in relation to—
(a)the preparation of a statement under sub-paragraph (4)(a) or (b), and
(b)the auditing of accounts kept under that Article for the periods mentioned in sub-paragraphs (4)(a) and (b).
(6) Notwithstanding its repeal by this Order, Article 19(5) of the 1981 Order shall continue to have effect for the purposes of any determination as to the expenses or receipts of the Law Society.
(7) The Lord Chancellor shall meet the costs of remunerating auditors and any other costs incurred by the Law Society in connection with the exercise of any of its functions under this paragraph.