54.—(1) Subject to paragraphs (2), (4) and (5), in the case of each grouped school, on the transfer date—
(a)all land or other property which, immediately before the transfer date, was property of the grouped governing body held or used for the purposes of the school; and
(b)all rights and liabilities of the grouped governing body subsisting immediately before that date which were acquired or incurred for those purposes,
shall be transferred to and, by virtue of this regulation, vest in either—
(i)the governing body of the school constituted under the instrument of government, in the case of a grouped school which on or after the appointed day becomes a foundation or voluntary aided school, or
(ii)the local education authority, in the case of a grouped school which on or after the appointed day becomes a community, community special or voluntary controlled school.
(2) Subject to paragraph (5), on the first transfer date, any property, rights and liabilities of a grouped governing body held or used or subsisting for the purposes of more than one school in the group shall, where the nature of the property, right or liability permits, be divided or apportioned between the schools, in such proportions as may be appropriate.
(3) Where any estate or interest in land falls to be divided in accordance with paragraph (2)—
(a)any rent payable under a lease in respect of that estate or interest; and
(b)any rent charged on that estate or interest;
shall be correspondingly divided or apportioned so that each part is payable in respect of, or charged on, only one part of the estate or interest and the other part or parts are payable in respect of, or charged on, only the other part or parts of the estate or interest.
(4) Subject to paragraph (5), any such property, right or liability as is mentioned in paragraph (2), the nature of which does not permit its division or apportionment as so mentioned, shall be transferred either to the governing body of any one or other of the schools in the group which on or after the appointed day becomes a foundation or voluntary aided school or to the local education authority in the case of any school in the group which on or after the appointed day becomes a community, community special or voluntary controlled school, according to—
(a)in the case of an estate or interest in land, whether on the first transfer date one or other of the schools appears to be in greater need of the security afforded by that estate or interest or, where none of them appears to be in greater need of that security, which of them appears on that date to be likely to make use of the land to the greater extent; or
(b)in the case of any other property or any right or liability, which of them appears on the first transfer date to be likely to make use of the property or (as the case may be) to be affected by the right or liability to the greater extent;
subject (in either case) to such arrangements for the protection of the other school or schools concerned as may be appropriate.
(5) Paragraphs (1), (2) and (4) shall not apply to—
(a)rights and liabilities under any contract of employment; or
(b)any land or other property vested in the grouped governing body as trustees.
(6) (a) Section 198(3) of and paragraphs 2 to 10 of Schedule 10 to the Education Reform Act 1988 (which make further provision in relation to transfers of property, rights and liabilities) shall apply to transfers under this regulation with the following modifications.
(b)Paragraph 2(1) of Schedule 10 shall apply subject to—
(i)the reference to “paragraph 1(4) above” shall be treated as a reference to “paragraph (4) of regulation 54 of the Education (Transition to New Framework) (New Schools, Groups and Miscellaneous) Regulations 1999”;
(ii)in sub-paragraph 1(a) the substitution of “other school or schools concerned” for “transferor”; and
(iii)in sub-paragraph 1(b) the substitution of “other school or schools concerned” for “transferor” in the last place where that word occurs.
(c)References in section 198(3) and in the said paragraphs of Schedule 10, as they apply for the purposes of this regulation, to the transfer date are to the transfer date as it is defined for the purposes of this regulation.
(7) (a) In this regulation, “first transfer date” means the transfer date of the first school in the group to have a governing body constituted under the instrument of government and “transfer date”, in relation to a grouped school, means the appointed day or the day after the actual incorporation date, if different.
(b)References in this regulation to the grouped governing body include a grouped transitional governing body.
(c)References in this regulation to a school or schools in the group shall include a school or schools which were in the group immediately before the first transfer date.