(1)The Defence Council shall pay to an association, out of money provided by Parliament, such sums as in the opinion of the Defence Council are required to meet the necessary expenditure incurred by the association.
(2)An association—
(a)shall annually at such time as may be specified in regulations under this Part; and
(b)may at any other time for any special purpose,
submit in such form and manner as may be so specified a statement of its necessary requirements to the Defence Council; and all payments under this section to an association shall be made upon the basis of such a statement, so far as approved by the Defence Council.
(3)Subject to regulations under this Part, any money paid to an association by the Defence Council shall be applicable to any of the purposes specified in the approved statements in accordance with which money has been granted and, except with the written consent of the Defence Council or an officer authorised by or in accordance with directions of the Defence Council for the purpose of giving consents, shall not be applicable otherwise.
(4)Nothing in this section shall be construed as enabling the Defence Council or an authorised officer to give consent to the application of money to any purpose to which, apart from this section, it could not lawfully be applied, or to give consent without the authority of the Treasury in any case in which, apart from this section, the authority of the Treasury would be required.
(5)All money received by an association otherwise than from the Defence Council (except such money, if any, as may be received by the association for specified purposes) shall be available for the purposes of any of the powers and duties of the association.
(6)The income from investments representing money originally received for the purposes of any of the reserve forces, or the cadet forces mentioned in section 113(1)(c), shall be applied only to that purpose, unless the Defence Council otherwise direct.