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1(1)The Authority may, if the programme contractor under a relevant contract so requests—
(a)determine the contract as from any time falling on or after the transfer date; and
(b)subject to paragraph 3(2) below, grant to the programme contractor as from that time a licence to provide a local service for the locality in which local sound broadcasts were to be provided by him under the contract.
(2)In sub-paragraph (1) “relevant contract” means a contract which (apart from that sub-paragraph) would continue in force by virtue of paragraph 2(1) in Part IV of this Schedule.
(3)A licence granted in pursuance of sub-paragraph (1) shall (subject to the provisions of Part III of this Act) continue in force for such period as the Authority may determine, except that the licence shall not expire—
(a)before the date on which the contract referred to in that sub-paragraph would have expired if it had not been determined under that sub-paragraph, or
(b)later than 31st December 1996 or the date which falls three years after the date referred to in paragraph (a), whichever is the earlier.
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