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7. Where the Secretary of State is liable to pay to a charging authority at any time an amount or amounts under one or more of the first relevant provisions, for the purposes of section 141A and Part II of these Regulations–
(a)the amount or amounts shall be treated as reduced by anything he may set off by virtue of Part I of these Regulations, in paying the amount or amounts, and
(b)he shall be treated as not liable to pay any such amount or amounts if, by virtue of regulations under that section, no payment need be made in respect of the amount or amounts.
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