794. Loans.

Where any property, rights or liabilities are transferred under a transfer scheme1 to a transferee2 which at the time of the transfer is:

  1.  

    (1)     a company3 which is wholly owned by the Crown4;

  2.  

    (2)     a company which is wholly owned by the Civil Aviation Authority ('CAA')5; or

  3.  

    (3)     a company which is a wholly owned subsidiary6 of a company falling within head (1) or head (2) above7,

then with the Treasury's8 approval the Secretary of State9 may make loans of such amounts as he thinks fit to the transferee, if when the loans are made it is a company falling