(1)The funding authority may make grants to a governing body in liquidation for the purpose of—
(a)discharging any liabilities of that governing body (other than section 67 loan liabilities), and
(b)meeting any costs incurred by that governing body for the purposes of the winding up in pursuance of an order under section 274.
(2)The funding authority may impose on a governing body to whom such a payment is made such requirements as they may from time to time determine (whether before, at or after the time when the payment in question is made).