Self-Governing Schools etc. (Scotland) Act 1989

61 Powers of education authorities to enter agreements and to make loans

(1) An education authority shall have power to enter into agreements for the supply of goods and services through a college of further education provided by them (such supply being construed in accordance with section 62 of this Act), and, in the exercise of that power, may—

(a) form companies under section 1 of the [1985 c. 6.] Companies Act 1985;

(b) for the purposes of such agreements, and subject to section 63 of this Act, make loans to those companies.

(2) Subject to the following provisions of this section, an education authority shall not under an agreement made under subsection (1) above supply goods or services for less than their open market value.

(3) For the purposes of this section the open market value of goods or services shall be taken to be the amount of the consideration in money that would be payable for the supply of those goods or services by a person standing in no such relationship with any person as would affect that consideration.

(4) Loans may be made under this section for the purposes of an agreement either before the agreement is made or during its currency.

(5) Nothing in this section shall be construed as—

(a) derogating from any powers exercisable by an education authority apart from this section; or

(b) authorising the carrying on through a college of further education of any commercial activities which are detrimental to the provision of further education at that college.