(1) This section applies to the payments made by the Crown to Te Kohanga Reo National Trust Board that—
(a) were capital accommodation grants under section 309(1)(a)(ii) of the principal Act for the period beginning on 1 July 1996 and ending with the close of 30 June 2000; and
(b) were advanced to the constituent kohanga reo by way of loans.
(2) The payments to which this section applies are validated and are to be treated for all purposes as if they were capital accommodation grants made in accordance with section 309 of the principal Act.