(1)This section applies to land which after the coming into force of this section is transferred to trustees under section 32(3)(b) of the [1992 c. 13.] Further and Higher Education Act 1992 (transfer of property on designation of institution).
(2)This section also applies to land which—
(a)is held by trustees for the purposes of an institution which became a designated institution after the coming into force of this section, and
(b)was acquired or enhanced in value wholly or partly by means of money paid under section 65 of the [1996 c. 56.] Education Act 1996 (grants) or paragraph 5 of Schedule 3 to the [1998 c. 31.] School Standards and Framework Act 1998 (grants).
(3)If trustees dispose of land to which this section applies they shall notify the appropriate council.
(4)If trustees dispose of land to which this section applies they shall pay to the appropriate council so much of the proceeds of disposal as may be determined to be just—
(a)by agreement between the trustees and the council, or
(b)in default of agreement, by the Secretary of State.
(5)In making a determination under subsection (4) regard shall be had, in particular, to—
(a)the value of the land at the date of the determination, and
(b)any enhancement of the land’s value which is attributable to expenditure by the trustees or the governing body of the designated institution.
(6)More than one determination may be made under subsection (4) in relation to a particular disposal where it is just to do so, in particular where the disposal involves the creation of a lease.
(7)If trustees permit land to which this section applies to be used for purposes not connected with the designated institution—
(a)they shall be treated for the purposes of this section as having disposed of the land, and
(b)subsection (4) shall have effect as if the reference to the proceeds of disposal were a reference to the value of the land.
(8)Where a designated institution has ceased to exist—
(a)this section applies to land which satisfied subsection (1) or (2) immediately before the institution ceased to exist, and
(b)in subsection (7) the reference to purposes not connected with the designated institution shall be treated as a reference to purposes not connected with an institution within the further education sector (within the meaning given by section 91(3) of the [1992 c. 13.] Further and Higher Education Act 1992).
(9)In this section “the appropriate council” means—
(a)the Learning and Skills Council for England, in respect of land in England, and
(b)the National Council for Education and Training for Wales, in respect of land in Wales.