(1)If an education administration order has been made in relation to a further education body, the appropriate national authority may make grants or loans to the body for the purpose of achieving the objective of the education administration.
(2)A grant or loan under this section may be made on whatever terms the appropriate national authority considers appropriate (including terms relating to repayment of the grant or loan, with or without interest).
(3)In the case of a loan, the terms must provide for paragraph 99(7)(a), (b) or (c) of Schedule B1 to the Insolvency Act 1986 (vacation of office: charges and liabilities) to apply in relation to any sum that must be paid by the further education body in respect of the loan or interest on it.
(4)In subsection (3) the reference to paragraph 99 of Schedule B1 to the Insolvency Act 1986 is to that Schedule as applied by Schedule 3 or 4 to this Act.
(1)If an education administration order has been made in relation to a further education body, the appropriate national authority may agree to indemnify persons in respect of one or both of the following—
(a)liabilities incurred in connection with the carrying out of functions by the education administrator, and
(b)loss or damage sustained in that connection.
(2)The agreement may be made in whatever manner, and on whatever terms, the appropriate national authority considers appropriate.
(3)As soon as possible after agreeing to indemnify persons under this section, the appropriate national authority must lay a statement of the agreement before Parliament or the National Assembly for Wales (as appropriate).
(4)For repayment of sums paid by the appropriate national authority in consequence of an indemnity agreed to under this section, see section 29.
(5)The power of the appropriate national authority to agree to indemnify persons—
(a)is confined to a power to agree to indemnify persons in respect of liabilities, loss and damage incurred or sustained by them as relevant persons, but
(b)includes power to agree to indemnify persons (whether or not they are identified or identifiable at the time of the agreement) who subsequently become relevant persons.
(6)The following are relevant persons for the purposes of this section—
(a)the education administrator;
(b)an employee of the education administrator;
(c)a partner or employee of a firm of which the education administrator is a partner or employee;
(d)a partner of a firm of which the education administrator was an employee or partner at a time when the order was in force;
(e)a body corporate which is the employer of the education administrator;
(f)an officer, employee or member of such a body corporate;
(g)a Scottish firm which is the employer of the education administrator or of which the education administrator is a partner.
(7)For the purposes of subsection (6)—
(a)references to the education administrator are to be read, where two or more persons are appointed as the education administrator, as references to any one or more of them, and
(b)references to a firm of which a person was a partner or employee at a particular time include a firm which holds itself out to be the successor of a firm of which the person was a partner or employee at that time.
(1)This section applies where a sum is paid out by the appropriate national authority in consequence of an indemnity agreed to under section 28 in relation to the education administration of a further education body.
(2)The further education body must pay the appropriate national authority—
(a)any amounts in or towards the repayment of that sum that the appropriate national authority directs, and
(b)interest on amounts outstanding under this subsection at whatever rates the appropriate national authority directs.
(3)The payments must be made by the further education body at times, and in a manner, determined by the appropriate national authority
(4)Subsection (2) does not apply in the case of a sum paid by the appropriate national authority for indemnifying a person in respect of a liability to the further education body.
(5)The appropriate national authority must lay before Parliament or the National Assembly for Wales (as appropriate) a statement relating to the sum paid out in consequence of the indemnity—
(a)as soon as possible after the end of the financial year in which the sum is paid out, and
(b)if subsection (2) applies to the sum, as soon as possible after the end of each subsequent financial year in relation to which the repayment condition has not been met.
(6)The repayment condition is met in relation to a financial year if—
(a)the whole of the sum has been repaid to the appropriate national authority before the beginning of the year, and
(b)the further education body was not at any time during the year liable to pay interest on amounts that became due in respect of the sum.
(1)If an education administration order has been made in relation to a further education body the appropriate national authority may guarantee—
(a)the repayment of any sum borrowed by the body while that order is in force,
(b)the payment of interest on any sum borrowed by the body while that order is in force, and
(c)the discharge of any other financial obligation of the body in connection with the borrowing of any sum while that order is in force.
(2)The appropriate national authority may give the guarantees in whatever manner, and on whatever terms, the appropriate national authority considers appropriate.
(3)As soon as possible after giving a guarantee under this section, the appropriate national authority must lay a statement of the guarantee before Parliament or the National Assembly for Wales (as appropriate).
(4)For repayment of sums paid by the appropriate national authority under a guarantee given under this section, see section 31.
(1)This section applies where a sum is paid out by the appropriate national authority under a guarantee given by the appropriate national authority under section 30 in relation to a further education body.
(2)The further education body must pay the appropriate national authority—
(a)any amounts in or towards the repayment of that sum that the appropriate national authority directs, and
(b)interest on amounts outstanding under this subsection at whatever rates the appropriate national authority directs.
(3)The payments must be made by the further education body at times, and in a manner, determined by the appropriate national authority.
(4)The appropriate national authority must lay before Parliament or the National Assembly for Wales (as appropriate) a statement relating to the sum paid out under the guarantee—
(a)as soon as possible after the end of the financial year in which the sum is paid out, and
(b)as soon as possible after the end of each subsequent financial year in relation to which the repayment condition has not been met.
(5)The repayment condition is met in relation to a financial year if—
(a)the whole of the sum has been repaid to the appropriate national authority before the beginning of the year, and
(b)the further education body was not at any time during the year liable to pay interest on amounts that became due in respect of the sum.