(2)The fund shall also be applicable, with the previous sanction of the [appropriate Government] [Substituted 'Local Government' by the A.O. 1937.], to a guarantee of the payment of interest on money to be applied, with the concurrence in writing of the local authority, within the limits of the local area under its control, to any of the purposes to which the fund might be applied by the local authority under subsection (1).
