Education Act 1944 (repealed 1.11.1996)

105 †Power of the Minister to make loans to aided schools and special agreement schools in respect of initial expenditure. E+W

(1) If upon the application of the . . . F1 governors of any aided school or special agreement school the [F2 Secretary of State for Education and Science] is satisfied after consultation with persons representing them that their share of any initial expenses required in connection with the school premises will involve capital expenditure which, in his opinion having regard to all the circumstances of the case, ought properly to be met by borrowing, he may make to the . . . F1 governors of the school for the purpose of helping them to meet that expenditure, a loan of such amount at such rate of interest and otherwise on such terms and conditions as may be specified in an agreement made between him and them with the consent of the Treasury.

(2) For the purposes of this section, the expression “initial expenses” means in relation to any school premises—

(a) expenses to be incurred in defraying the cost of any alterations required by the development plan approved by the [F2 Secretary of State for Education and Science] for the area;

(b) expenses to be incurred in pursuance of any special agreement;

[F3 (c) (i) expenses to be incurred in providing a site or school buildings on a significant enlargement of the school premises [F4 or on a transfer of the school to a new site], being expenses in respect of which [F5 grants under section 281 of the Education Act 1993] may be paid;

(ii) expenses to be incurred in providing school buildings on a site to which the school is to be transferred under the authority of an order under section 16(1) of this Act;

(iii) expenses to be incurred in providing a site or school buildings for a new school [F6 which by virtue of an order under section 16(2) of this Act is deemed to be in substitution for a discontinued school or schools]];

F7 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

and the . . . F1 governors’ share of any such initial expenses shall be taken to be so much thereof as remains to be borne by them after taking into account the amount of any F8 . . . grant under a special agreement, or grant under [F9 section 281 of the Education Act 1993], as may be paid or payable in respect of those expenses.

(3) If upon an application being made to him under subsection (2) of section fifteen of this Act for an order directing that a school shall be an aided school or a special agreement school it appears to the [F2 Secretary of State for Education and Science] that the area served by the school will not be also served by any county school or controlled school, then, unless he is satisfied that the . . . F1 governors of the school will be able to defray the expenses which would fall to be borne by them under paragraph (a) of subsection (3) of that section without the assistance of a loan under this section, the [F2 Secretary of State for Education and Science] shall consult such persons or bodies of persons as appear to him to be representative of any [F10 religion or] religious denomination which, in his opinion having regard to the circumstances of the area, is likely to be concerned; and, unless after such consultation he is satisfied that the holding of a local inquiry is unnecessary, shall cause such inquiry to be held before determining the application.

Textual Amendments

F1 Words repealed by Education Act 1980 (c. 20, SIF 41:1), s. 1(3), Sch. 1 para. 1

F2 Words substituted by virtue of S.I. 1964/490, art. 3(2)(a)

F3 S. 105(2)(c) substituted by Education Act 1968 (c. 17), Sch. 1 para. 4(2)

F4 Words in s. 105(2)(c)(i) inserted(1.10.1993) by 1993 c. 35, s. 307(1), Sch. 19 para. 23(a)(i); S.I. 1993/1975, art. 9, Sch. 1

F5 Words in s. 105(2)(c)(i) substituted (1.10.1993) by 1993 c. 35, s. 307(1), Sch. 19 para. 23(a)(i); S.I. 1993/1975, art. 9, Sch. 1

F6 Words in s. 105(2)(c)(iii) substituted (1.1.1994) by 1993 c. 35, s. 307(1), Sch. 19 para. 23(a)(ii); S.I. 1993/3106, art. 4, Sch. 1

F7 S. 105(2)(d) repealed (1.1.1994) by 1993 c. 35, s. 307(1)(3), Sch. 19 para. 23(a)(iii), Sch. 21 Pt.II; S.I. 1993/3106, art. 4, Sch. 1

F8 Words in s. 105(2) repealed (1.4.1994) by 1993 c. 35, s. 307(1)(3), Sch. 19 para. 23(a)(iv), Sch. 21 Pt. II; S.I. 1993/3106, art. 4, Sch. 1

F9 Words in s. 105(2) substituted (1.1.1994) by 1993 c. 35, s. 307(1), Sch. 19 para. 23(a)(iv); S.I. 1993/3106, art. 4, Sch. 1

F10 Words in s. 105(3) inserted (1.4.1994) by 1993 c. 35, s. 307(1), Sch. 19 para. 23(b); S.I. 1994/507, art. 4(1), Sch.2.

Modifications etc. (not altering text)

C1 Unreliable marginal note.

C2 S. 105 amended by Education (Miscellaneous Provisions) Act 1953 (c. 33), s. 8(3), Education Act 1959 (c. 60), s. 1(4) and Education Act 1967 (c. 3), s. 1(4)