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(1)Subject to section 125(1) of this Act, where land purchased under Part III of the Housing Act 1957, Part IV of the Town and Country Planning Act 1947, or Part V of the Town and Country Planning Act 1962 comprises premises for which an old on-licence is in force, the following provisions shall have effect:—
(a)a purchasing authority, before purchasing the premises, may undertake that if renewal of the licence is refused they will pay to the compensation authority towards the compensation payable on the refusal under this Part of this Act such contribution as may be specified in the undertaking; and any sum payable by the purchasing authority in pursuance of such an undertaking shall be treated as part of their expenses in purchasing the land;
(b)if, after purchasing or contracting to purchase the premises, the purchasing authority intimate to the licensing justices that they are willing to surrender the licence, the licensing justices may refer the matter to the compensation authority; and that authority, on being satisfied that they might properly under section 13 of this Act have refused to renew the licence, if not surrendered, shall contribute out of the compensation fund towards the compensation paid by the purchasing authority for the purchase of the premises a sum not exceeding the compensation that would have been payable under this Part of this Act on refusal to renew the licence.
(2)In this section " purchasing authority" means a local authority purchasing under Part III of the Housing Act 1957 or a Minister, local authority or any statutory undertakers purchasing under Part V of the Town and Country Planning Act 1962 and, in subsection (1)(b), includes a Minister, local authority or statutory undertakers having purchased under Part IV of the Town and Country Planning Act 1947.
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