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1(1)Contributions by the Secretary of State under section 16 of the Housing (Financial Provisions) (Scotland) Act 1968 remain payable in connection with arrangements made under—
section 14 of the [1962 c. 28.] Housing (Scotland) Act 1962, or
section 154 of the Housing (Scotland) Act 1966,
(arrangements between Secretary of State and housing associations) and approved before 1st April 1975.
(2)The Secretary of State may, in any of the circumstances mentioned in sub-paragraph (3), reduce the amount of the contributions in respect of a particular subsidised unit, or suspend or discontinue the payment of the contributions, or part of them, as he thinks just in the circumstances.
(3)The circumstances referred to in sub-paragraph (2) are—
(a)that the housing association has made default in giving effect to the terms of the arrangements, or
(b)the subsidised unit has been converted, demolished or destroyed, is not fit to be used or has ceased to be used for the purpose for which it was intended, has been sold or leased for a stipulated duration exceeding twelve months or has been transferred, whether by sale or otherwise.
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