(1) Where the proprietor or the Board of Management of any assisted school requires a loan for the purpose of improving or extending the buildings of the assisted school or erecting a new school in substitution for any discontinued assisted school, the proprietor or the Board of Management may apply to the Minister for a loan from the Government.
(2) If upon consideration of an application for a loan under this section, the Minister is satisfied that the purpose for which the loan is required ought to be carried out and that the amount required may properly be obtained by borrowing, the Minister may arrange to obtain a loan from the Government on such terms and conditions as may be agreed by the parties.