67 Loans in respect of initial expenses.E+W
(1)Where, on the application of the governing body of an aided or special agreement school and after consulting persons representing the governing body, the Secretary of State—
(a)is satisfied that the governing body’s share of any initial expenses required in connection with the school premises will involve capital expenditure, and
(b)having regard to all the circumstances of the case, considers that that expenditure ought properly to be met by borrowing,
he may make a loan to the governing body for the purpose of helping them meet that expenditure.
(2)The amount, rate of interest and other terms and conditions applicable to the loan shall be such as may be specified in an agreement made between the Secretary of State and the governing body with the consent of the Treasury.
(3)For the purposes of this section “initial expenses” are expenses of any of the following categories—
(a)expenses to be incurred in pursuance of a special agreement;
(b)expenses to be incurred in providing school buildings on a site to which the school is to be transferred pursuant to an order under section 47;
(c)expenses to be incurred in providing a site or school buildings on a significant enlargement of the school premises or on the transfer of the school to a new site, being expenses in respect of which grants may be paid under section 65;
(d)expenses to be incurred in providing a site or school buildings for a new school, being expenses in respect of which grants may be paid under section 65.
(4)For the purposes of this section the governing body’s share of any initial expenses shall be taken to be so much of the expenses as remains to be borne by the governing body after taking into account the amount of any grant under section 65 or under a special agreement that may be paid or payable in respect of them.