Legal Aid Act 1988

2 (1) On the appointed day the legal aid fund (“the Old Fund”) maintained by the Law Society under section 17 of the 1974 Act shall be wound up.

(2) If, as at the appointed day, after taking account of all receipts and expenses of the Law Society attributable to their functions under the 1974 Act and the [1982 c. 44.] Legal Aid Act 1982 (“the 1982 Act”), there is in relation to the Old Fund any surplus or deficit—

(a) such surplus shall be paid by the Law Society to the Lord Chancellor; and

(b) such deficit shall be made up by payment to the Law Society by the Lord Chancellor of the amount of the deficit.

(3) Notwithstanding their repeal by this Act—

(a) sections 15(9) and 18 of the 1974 Act shall continue to have effect for the purposes of requiring the Law Society to account for the Old Fund and to report on the discharge of its functions under that Act up to the appointed day; and

(b) section 17(5) of that Act shall continue to have effect for the purposes of any determination as to the expenses or receipts of the Law Society;

and, if the appointed day falls on a day which is not the last day of the financial year (for the purposes of the said section 18), references in those sections to the financial year shall be construed as references to the period commencing on the day immediately following the end of the last complete financial year and ending with the appointed day.

(4) The Lord Chancellor shall pay to the Law Society such expenses incurred after the appointed day in connection with their functions under sections 15(9) and 18 of the 1974 Act as appear to him to be reasonable.

(5) Any payments received by the Lord Chancellor under sub-paragraph (2)(a) above shall be paid by him into the legal aid fund established by the Board under section 6.

(6) Any amount required to be paid by the Lord Chancellor under sub-paragraph (2)(b) or (4) above shall be defrayed out of money provided by Parliament.