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2. Where the Secretary of State is satisfied that–
(a)a maintained school has been established in substitution for one or more discontinued schools each of which has or could have been designated as a grammar school (whether by virtue of section 104(1) of the Act or by virtue of this regulation); and
(b)that the school will have or had selective admission arrangements at the beginning of the school year in which the school first admits pupils,
he may designate the school as a grammar school for the purpose of Chapter II of Part III of the Act.
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