3.—(1) The Board and the Association may enter into and carry into effect agreements providing for the transfer to and the vesting in the Association of the railway or any part thereof on such terms and conditions as may be agreed between the Board and the Association.
(2) Except as may be otherwise provided in this Order, as from the transfer date the Association shall to the exclusion of the Board be entitled to the benefit of and to exercise all rights, powers and privileges and be subject to all obligations of the Board whether statutory or otherwise relating to the railway or such part as is transferred as aforesaid (in so far as the same are still subsisting and capable of taking effect) to the intent that the Board shall be released from all such obligations.
(3) As from the transfer date the Association may work the railway or such part thereof as a light railway under the Act.