School Standards and Framework Act 1998

10 (1) Nothing in Part II of this Schedule has the effect of transferring to, or vesting in, any body—

(a) any land, rights or liabilities excluded under sub-paragraph (2) or (3),

(b) any rights or liabilities under a contract of employment,

(c) any liability of a governing body in respect of the principal of, or any interest on, any loan,

(d) any liability in tort, or

(e) any rights or liabilities which are determined in accordance with regulations to be rights or liabilities falling within this paragraph.

(2) If before the appointed day—

(a) the prospective transferee and transferor have agreed in writing that any land should be excluded from the operation of Part II of this Schedule, and

(b) the Secretary of State has given his written approval of the agreement,

the land (and any rights or liabilities relating to it) shall be so excluded.

(3) If in default of agreement under sub-paragraph (2)—

(a) the prospective transferee or transferor have applied to the Secretary of State to exclude any land from the operation of Part II of this Schedule, and

(b) the Secretary of State has by order directed its exclusion,

the land (and any rights or liabilities relating to it) shall be so excluded.

(4) An agreement under sub-paragraph (2) may provide for the land to be used or held for the purposes of the school (as a school of a new category) on such terms as may be specified in or determined in accordance with the agreement; and directions under sub-paragraph (3)—

(a) may confer any rights or impose any liabilities that could have been conferred or imposed by such an agreement, and

(b) shall have effect as if contained in such an agreement.

(5) In this paragraph—

• “new category” means one of the categories set out in section 20(1);

• “the prospective transferee”, in relation to any land, means the body to whom, apart from sub-paragraph (2) or (3), the land would fall to be transferred under Part II of this Schedule; and

• “the prospective transferor” shall be construed accordingly.