Subsection (2) applies if the Secretary of State considers that the HCA or any subsidiary of the HCA has a surplus, whether on capital or on revenue account, after making allowance by way of transfer to reserve or otherwise for its future requirements.
The Secretary of State may give a direction to the HCA to pay to the Secretary of State such sum not exceeding the amount of the surplus as may be specified in the direction.
The Secretary of State must consult the HCA before coming to a decision of the kind mentioned in subsection (1) or giving a direction as mentioned in subsection (2).
The Secretary of State may decide to treat the whole or part of any payment under subsection (2) as made—
by way of repayment of such part of the principal of loans under section 21(1), and
in respect of the repayments due at such times,
as the Secretary of State may decide.