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(1)The Secretary of State may, on such terms as he may with the approval of the Treasury specify, appoint the Agency to act as his agent in connection with such of the functions mentioned in subsection (2) as he may specify; and where such an appointment is made, the Agency shall act as such an agent in accordance with the terms of its appointment.
(2)The functions referred to in subsection (1) are—
(a)functions under section 1 of the [1982 c. 42.] Derelict Land Act 1982 or any enactment superseded by that section (grants for reclaiming or improving land or bringing land into use), other than the powers to make orders under subsections (5) and (7) of that section; and
(b)so far as exercisable in relation to England, functions under sections 27 to 29 of the [1986 c. 63.] Housing and Planning Act 1986 (financial assistance for urban regeneration).
(3)In so far as an appointment under subsection (1) relates to functions mentioned in subsection (2)(b), the terms of the appointment shall preclude the Agency from giving financial assistance in respect of expenditure which is not qualifying expenditure within the meaning of section 164.
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