Subject to paragraph (2) below, all the functions, rights and liabilities of the LRB which relate to, or arise from, any contract of employment with the Greater London Council, ILEA or the LRB which terminated on or before 31st December 1991 shall on 1st April 1992 transfer to, or vest in, the LPFA.

Paragraph (1) above shall not apply to any rights and liabilities of the LRB in relation to any cause of action or proceeding brought by a third party against the Greater London Council, ILEA or the LRB, or against any employee of the Greater London Council, ILEA or the LRB, or against both such an employee and his employer.

On 1st April 1992 all records, monies and other personal property held or used by the LRB exclusively for or in connection with any of the matters specified in paragraph (1) above shall vest in the LPFA.