Any sum paid to, or recovered by, a local highway authority under any of the provisions of this Act mentioned in subsection (2) below, being a sum which for the purpose of any such provision is a lump sum, and so much of any other sum paid to, or recovered by, any such authority under any of those provisions as represents capital, shall be applied by the authority for purposes for which capital money is applicable by them.

The provisions of this Act referred to in subsection (1) above are sections 53(3) and (4), 54(1) and (2), 55(2) to (4) and 255(4), and paragraph 19 of Schedule 11.