(a) All lease agreements, security agreements or any other contracts, instruments or agreements for office space, classrooms, warehouse space and similar facilities shall be pre-approved by the Secretary of Education. Loan agreements and mortgages for office and warehouse facilities shall be pre-approved by the Secretary of Education. For the 1977-1978 school year and each school year thereafter, in addition to any payments required under section 917.1-A,¹ the Commonwealth shall allocate to the intermediate units, on account of approved lease agreements, loan agreements, mortgages, security agreements or any other contracts, instruments or agreements, an amount to be determined as follows: by obtaining the product of the number of students in average daily membership (ADM) multiplied by the median actual instruction expense per weighted average daily membership of all the school districts, to be further multiplied by three one-hundredths of one percent (0.03%), based on the latest actual data available to the Secretary of Education.

(b) The distribution to each intermediate unit shall be computed by applying the intermediate unit aid ratio to each approved payment under any such lease agreement, loan agreement, mortgage, security agreement or other contract, instrument or agreement. The aid ratio computed initially shall apply as a minimum for the duration of the lease agreement, loan agreement, mortgage, security agreement or other contract, instrument or agreement: Provided, however, That no intermediate unit shall receive less, on account of approved lease agreements, loan agreements, mortgages, security agreements or any other contracts, instruments or agreements, than it received for the 1976-1977 school year.

(c) Where the allocations under this section do not satisfy reimbursement requirements under any lease agreements, mortgages, security agreements or any other contracts, instruments or agreements, each intermediate unit shall receive a pro rata share of the amount determined by the above formula.

(d) Notwithstanding any provision of this act to the contrary, for the 1997-1998 school year, each intermediate unit shall receive the actual payment for capital subsidy which it received under this section and section 2502.6(b)² during the 1996-1997 school year.

(e) Notwithstanding any provision of this act to the contrary, for the 1998-1999 school year and each school year thereafter, each intermediate unit shall receive the actual payment for capital subsidy which it received under this section and section 2502.6 during the 1997-1998 school year.