In exercising their functions under this Part a funding agency shall comply with any directions under this section.

The Secretary of State may give general directions to a funding agency about the exercise of their functions.

If it appears to the Secretary of State that the financial affairs of an eligible institution have been or are being mismanaged he may, after consulting the agency and the institution, give such directions to the funding agency about the provision of financial support in respect of the activities carried on by the institution as he considers are necessary or expedient by reason of the mismanagement.

Directions under this section shall be contained in an order made by the Secretary of State.