(1) Subject to paragraph (3), all property vested in, and all rights and liabilities acquired, accrued or incurred by the transferor authority in respect of the transferred area transfer to and vest in or, as the case may be, become rights and liabilities of, the transferee authority on the transfer date.
(2) For the purposes of this Order, property, rights and liabilities of the transferor authority are to be treated as property, rights and liabilities in respect of the transferred area if—
(a) in the case of land, it is situated in, or held exclusively for the purposes of, or in connection with, the exercise of functions in, or in relation to, the transferred area;
(b) in the case of liabilities, they are liabilities incurred exclusively in respect of the transferred area.
(3) Paragraphs (4) and (5) apply to—
(a) any property held by a transferor authority, as sole trustee, exclusively for charitable purposes (“charitable property”);
(b) any rights or liabilities of a transferor authority in respect of charitable property,
and in this article, “trusts” has the same meaning as in the Charities Act 2011 .
(4) Where charitable property is held by a transferor authority for the benefit of—
(a) a specified area, the whole or greater part of which is situated within the transferred area, or
(b) the inhabitants of that specified area, or
(c) any particular class or body of persons in that specified area,
that property shall, on the transfer date, vest (on the same trusts) in the transferee authority.
(5) Charitable property which is not vested in accordance with paragraph (4) shall continue to be held by the transferor authority.