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(1)Where a draft of a local area agreement has been submitted to him under section 106(1), the Secretary of State may by notice in writing to the responsible local authority—
(a)approve the draft; or
(b)require the responsible local authority to modify the draft.
(2)Where the Secretary of State approves a draft local area agreement under subsection (1)(a), a local area agreement in the form of the draft has effect for the area of the responsible local authority for the period specified in the local area agreement by virtue of section 106(1)(c).
(3)A requirement under subsection (1)(b) to modify a draft of a local area agreement operates for the purposes of section 106 as a direction under subsection (1) of that section to prepare and submit a further draft of a local area agreement.
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