Transfer of property, etc.
2.—(1) On the transfer date —
(a)any immovable property of the Residuary Body which is the subject of an agreement for its disposal or option for its purchase, and any interest of the Residuary Body in any mortgage, shall vest in South Tyneside; and
(b)all other property of the Residuary Body (whether movable or immovable) shall vest in the local council.
(2) All rights and liabilities of the Residuary Body acquired or incurred, and all records relating exclusively to property transferred by paragraph (1) shall vest in the council to which it is so transferred.
(3) In each financial year commencing with the financial year beginning 1st April 1988 South Tyneside shall pay to each of the other local councils the appropriate proportion of an amount equal to South Tyneside`s net revenue receipts from any property or interest vested by paragraph (1)(a), and net capital receipts from the repayment of principal in respect of any interest so vested or the disposal of any such interest or of any property so vested.
(4) In the preceding paragraph, “net revenue receipts” means revenue receipts in the year in question after deducting the aggregate amount of expenditure incurred by South Tyneside in that year in connection with property vested by paragraph (1)(a); and “net capital receipts” means capital receipts in the year in question after deducting any amount by which net revenue receipts are a negative amount.
(5) The balance of the net capital and revenue receipts shall be retained by South Tyneside.