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Version Superseded: 20/07/1992
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(1)In accordance with arrangements approved by the Secretary of State and the Treasury, the Board shall have power to give financial assistance by way of grant or loan, or partly in one way and partly in the other, to any person carrying on or proposing to carry on any industrial, commercial or other undertaking or any activity which in the opinion of the Board will contribute to the economic or social development of the Highlands and Islands.
(2)On making a grant or loan under this section the Board may impose such conditions as they think fit, including (in the case of a grant) conditions for repayment in specified circumstances.
(3)Where a loan is made under this section to a crofter for the purpose of assisting him in the erection of any building or other structure, or the execution of any works, on his croft, or of assisting him in carrying on any business or undertaking on or in connection with his croft the Board may give notice thereof to the landlord of the croft and to the Secretary of State, and if notice is so given, then—
(a)in relation to that loan section 11(7)(a) of the M1Crofters (Scotland) Act 1955 (which provides for payment to the Secretary of State of the value of improvements on the croft of a deceased crofter up to the amount of the crofter’s liability to the Secretary of State) and section 23(3) of that Act (which provides for the transfer to the Secretary of State of rights of crofters to compensation for improvements) shall apply as if for the references to the Secretary of State there were substituted references to the Board, so however that any rights of the Board thereby created shall be postponed to any rights, whensoever constituted, of the Secretary of State under those provisions:
Provided that the landlord shall be entitled to set off all rent due or to become due by the crofter against any sum found to be due to the Board by virtue of this paragraph;
(b)any amount due to the executor of the crofter under section 11(7A) of the said Act of 1955 (which provides in certain circumstances for payment by the Secretary of State to the executor of the difference between the value of improvements computed on one basis as compared with another) or to the crofter under section 6(3) of the M2Crofters (Scotland) Act 1961 (which provides for payment to certain crofters by the Secretary of State of sums additional to compensation in respect of improvements) shall, up to the amount of any outstanding liability on the loan, so far as not already met under the provisions of the foregoing paragraph, be payable not to him but to the Board.
In this subsection “croft”, “crofter” and “landlord” have the meanings respectively assigned to them by the said Act of 1955, and any reference to a crofter includes a reference to a statutory successor within the meaning of that Act.
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