Part 2Further education bodies: insolvency etc

CHAPTER 4Further education bodies: special administration

Financial support for bodies in education administration

30Guarantees where education administration order is made

(1)

If an education administration order has been made in relation to a further education body the appropriate national authority may guarantee—

(a)

the repayment of any sum borrowed by the body while that order is in force,

(b)

the payment of interest on any sum borrowed by the body while that order is in force, and

(c)

the discharge of any other financial obligation of the body in connection with the borrowing of any sum while that order is in force.

(2)

The appropriate national authority may give the guarantees in whatever manner, and on whatever terms, the appropriate national authority considers appropriate.

(3)

As soon as possible after giving a guarantee under this section, the appropriate national authority must lay a statement of the guarantee before Parliament or the National Assembly for Wales (as appropriate).

(4)

For repayment of sums paid by the appropriate national authority under a guarantee given under this section, see section 31.