(1)Subject to the provisions of this section, a local authority shall discharge their duty to provide accommodation and maintenance for a child in their care—
(a)by boarding him out on such terms as to payment by the authority and otherwise as the authority may, subject to the provisions of this Act and regulations thereunder, determine; or
(b)by maintaining the child in a residential establishment.
(2)Nothing in the foregoing subsection shall be construed as preventing a local authority from making use, in the case of any child, of any such facilities and services as are referred to in subsection (2) of the last foregoing section, and for that purpose arranging for his accommodation and maintenance in any suitable manner not specified in the last foregoing subsection.
(3)Arrangements may be made by a local authority under this section for boarding out a child in England or Wales or for maintaining him in any accommodation in England or Wales which a local authority in those countries is authorised to use for that purpose by virtue of section 13 of the [1948 c. 43.] Children Act 1948.