(1)Where an endowment is an educational endowment [F1to which the powers conferred by section 105 of this Act extend], and part of it is applicable or applied to other charitable purposes, the scheme shall be in conformity with the provisions of subsections (2) to (6) below (except so far as the governing body of such endowment assent to the scheme departing therefrom).
(2)The proportion of the endowment or annual income for the time being derived therefrom which is applicable to such other charitable purposes shall not be diverted by the scheme from such purposes unless in the opinion of the [F2education authority having power to exercise, in relation to that endowment, the functions conferred by section 105 of this Act]—
(i)there are no persons who are entitled to benefit out of such part of the endowment; or
[F3(ii)the purposes of such part of the endowment have become obsolete or useless.]
(3)The proportion of the endowment or annual income for the time being so applicable to such other charitable purposes shall be deemed to be the proportion which, in the opinion of the [F4education authority], is the proportion which has according to the average of [F5the five most recent years for which accounts are available] been appropriated as regards capital or applied as regards income to such purposes, or if that proportion differs from the proportion which ought to have been so appropriated or applied according to the express directions of the instrument of foundation or the decree of any competent court or the statutes or regulations governing such endowment, the proportion applicable to such other charitable purposes shall be the proportion which ought, according to the express directions of such instrument, or such decree or such statutes or regulations, to have been appropriate or applied to such other charitable purposes.
(4)If the proportion applicable to other charitable purposes amounts to or exceeds one half of the whole of the endowment, the governing body of such endowment existing at the date of the scheme shall, so far as regards its non-educational purposes, remain unaltered by the scheme.
(5)Where the governing body remains so unaltered, that body shall pay or apply for educational purposes such proportion as under the former provisions of this section is applicable to those purposes, or such less sum as may be fixed by the [F6education authority].
(6)When any portion of the endowment or the annual income of such portion has been accumulated and not applied to any purpose, the [F6education authority] shall determine whether, and in what proportion, such portion or income is to be considered for the purposes of this section as having been appropriated or applied for educational purposes or for other charitable purposes.
(7)Subject to the foregoing provisions of this section, the [F6education authority] shall have power by any scheme to deal with any such endowment, and with the governing body thereof, in the same manner in all respects as if it were an endowment applied wholly to educational purposes.
Textual Amendments
F1Words substituted with savings by Education (Scotland) Act 1981 (c. 58), Sch. 6 para. 6(a), Sch. 8 and S.I. 1981/1557, art. 4
F2Words substituted with savings by Education (Scotland) Act 1981 (c. 58), Sch. 6 para. 6(b)(i), Sch. 8 and S.I. 1981/1557, art. 4
F3S. 107(2)(ii) substituted for s. 107(2)(ii)–(iv) with savings by Education (Scotland) Act 1981 (c. 58), Sch. 6 para. 6(b)(ii), Sch. 8 and S.I. 1981/1557, art. 4
F4Words substituted with savings by Education (Scotland) Act 1981 (c. 58), Sch. 6 para. 6(c)(i), Sch. 8 and S.I. 1981/1557, art. 4
F5Words substituted with savings by Education (Scotland) Act 1981 (c. 58), Sch. 6 para. 6(c)(ii), Sch. 8 and S.I. 1981/1557, art. 4
F6Words substituted with savings by Education (Scotland) Act 1981 (c. 58), Sch. 6 para. 6(d), Sch. 8 and S.I. 1981/1557, art. 4