Education Act 1996

279 Surplus money and investments

(1) Subject to the following provisions of this section—

(a) any money held by or for a governing body in liquidation (whether held in cash or to their account at or on deposit with any bank or other institution), and

(b) any investments to which this section applies held by or for such a governing body,

shall, after discharge of the liabilities and costs mentioned in subsection (2), be paid or (as the case may be) transferred by the governing body to the Secretary of State.

(2) The liabilities and costs referred to in subsection (1) are—

(a) all the liabilities of the governing body in liquidation (other than any not required to be discharged before the dissolution date is appointed), and

(b) all costs of the winding up.

(3) Where the Secretary of State is satisfied as to the whole or any part of any such money or as to any such investments—

(a) that the money or that part of it was derived, or (as the case may be) those investments were acquired, otherwise than from grants paid by him or the funding authority under this Part, and

(b) that it ought to be paid, or the investments ought to be transferred, to a local education authority or to some other person,

he may require the governing body to pay the money or (as the case may be) an amount equal to the part in question, or to transfer those investments, to such local education authority or other person as he may specify, either beneficially or to be held on trust for such purposes as he may specify.

(4) Where the premises of the school are to be used for the purposes of a new or existing grant-maintained school, the Secretary of State may require the governing body in liquidation, after discharge of the liabilities mentioned in subsection (2)—

(a) to pay any money held by or for them, and

(b) to transfer any investments to which this section applies held by or for them,

to the governing body of the new or existing grant-maintained school, either beneficially or to be held on trust for such purposes as he may specify.

(5) Without prejudice to the powers of the Secretary of State under subsections (3) and (4), any payment of money or transfer of investments under this section shall be free of any trusts on which the money or investments are held by the governing body before the payment or transfer is made.

(6) This section applies to any investment within the meaning of the [1986 c. 60.] Financial Services Act 1986 which falls within—

(a) any of paragraphs 1 to 6 of Schedule 1 to that Act (investments and investment business), or

(b) paragraph 11 of that Schedule, so far as referring to investments falling within any of paragraphs 1 to 6.

(7) References in subsection (6) to any paragraphs of Schedule 1 to the Financial Services Act 1986 include references to those paragraphs as amended by any order under section 2 of that Act (power to extend or restrict scope of Act) which amends those paragraphs for the purposes of all the provisions of that Act.