The arrangements may provide for the loans to be made and recovered, and other functions in relation to the loans to be discharged, by such person or persons as may agree to do so or by one or more bodies constituted or acquired by the Secretary of State for that purpose.

The Secretary of State shall provide any person or body having the function of making loans under the arrangements with the funds necessary for making the loans; and any such person or body shall make such periodical repayments to him in respect of those funds as he may require.

Arrangements made by virtue of this paragraph may include provision for defraying the administrative expenses incurred by the person or body in question in discharging the functions to which the arrangements relate and for remunerating that person or body for discharging them.

Regulations made under paragraph 1(1)(b) or (c) above may confer functions on any such person or body as is mentioned in sub-paragraph (1) above, including power to exercise a discretion in relation to any matter for which the regulations provide.

Any arrangements made by virtue of this paragraph shall provide for the appointment of an independent person approved by the Secretary of State with the function of investigating and reporting on disputes between borrowers or intending borrowers under this Act and any person or body having the function of making loans under the arrangements.

Any person or body having the function of making loans by virtue of this paragraph shall make to the Secretary of State such periodical reports as he may require with respect to the working of the arrangements under which the loans are made.

Any person or body having the function of recovering loans under the arrangements may, for appropriate consideration, assign the right of recovery to a third party.

No document sent in connection with loans under the arrangements by any such person or body as is mentioned in sub-paragraph (1) above shall be regarded as sent with a view to financial gain within the meaning of section 50 of the [1974 c. 39.] Consumer Credit Act 1974 (circulars to minors).