5.—(1) This article applies where by virtue of the provisions of section 53 of the 1994 Act or an order made under section 54 of that Act—
(a)the receipt by an old authority of a specified capital grant within the meaning of section 57(1) of the 1989 Act has effect as if it had been received by a successor authority; and
(b)the successor authority is required under section 57(2) of that Act to deduct an amount equal to or less than the grant from a credit approval.
(2) Section 57(4)(c) of the 1989 Act shall have effect as if the reference to credit approvals which are received later than the grant included credit approvals received by the successor authority later than the time the grant was received by the old authority.