Mar. 18.] THE NEW ZEALAND GAZETTE. 843

REGULATIONS RESPECTING LOANS TO LOCAL AUTHORITIES.

1. The term of every loan granted to a local authority under the said Act shall be thirty-six and a half years.

2. The principal and interest of every such loan shall be payable by half-yearly instalments in accordance with such one of the tables contained in the First Schedule hereto (or hereafter prescribed by any regulations made in that behalf) as is appropriate to the case.

3. Any local authority may, before making an application for a loan in manner hereinafter provided, and although it has not yet taken the necessary steps under the Local Bodies’ Loans Act, 1908, or otherwise, for obtaining sufficient authority to raise that loan, make a preliminary application to the Board in the Form No. 1 in the Second Schedule hereto, or to the like effect, for the provisional approval of the proposed loan by the Board. Every such preliminary application shall be transmitted by post or otherwise to the Superintendent of the New Zealand State-guaranteed Advances Office at Wellington, and shall be accompanied by a copy of the last balance-sheet of the local authority.

4. The Board shall thereupon take this preliminary application into consideration, and may either refuse to entertain the proposal or may agree to entertain it on such terms and with such modifications (if any) as it thinks fit.

5. If the Board decides to entertain the said proposal, notice of the decision shall be given to the local authority in the Form No. 2 in the Second Schedule hereto, or to the like effect, in order that the local authority may take such steps under the Local Bodies’ Loans Act, 1908, or otherwise, as may be necessary for the purpose of obtaining sufficient authority to raise the loan, and for the making of the special rate required as security for the loan.

6. No such provisional approval by the Board shall be deemed to constitute any agreement between the Board or Superintendent and the local authority, or shall affect in any manner the right of the Board to refuse to grant the loan, or its right to impose any conditions on the grant thereof.

7. Every such provisional approval shall lapse unless an application for the loan so approved is made by the local authority in manner hereinafter provided, and received by the Superintendent within six months after the date of the decision of the Board approving of the proposed loan.

8. When the Board has provisionally approved of any loan in manner aforesaid the local authority may make application to the Board for the grant of the loan in accordance with the terms and conditions set out in the notice of provisional approval. Every such application shall be in such one of the forms Nos. 3A, 3B, or 3C in the Second Schedule hereto as is applicable, or to the like effect, and shall be verified by a statutory declaration in the Form No. 4 in the said Schedule. Every such application shall be transmitted by post or otherwise to the Superintendent at Wellington.

9. No such application for a loan shall be made until the local authority has taken all necessary steps under the Local Bodies’ Loans Act, 1908, or otherwise, for obtaining sufficient authority to raise the loan, and has duly made the special rate required as security for the loan.

10. The Board may, if it thinks fit, in special cases accept an application for a loan although no preliminary application or approval has been made or obtained in accordance with the foregoing regulations, or although the application does not conform to the terms and conditions provisionally approved by the Board.

11. Every application for a loan shall be taken into consideration by the Board, which shall by resolution either grant or refuse the application; and notice of the acceptance or refusal of the application shall thereupon be given to the local authority.

12. Every such notice of acceptance shall constitute a contract between the Superintendent and the Corporation of the local authority to grant and accept the loan in accordance with the terms of the application.

13. The term of the loan shall commence on the day agreed upon between the Superintendent and the local authority in manner aforesaid, notwithstanding any default by the local authority in accepting the amount of the loan or in fulfilling the conditions of the receipt thereof; and the dates of the payment of principal and interest by the local authority shall be computed and determined accordingly.

14. Any loan may, if so agreed upon, be made payable to the local authority by instalments, and in any such case each instalment shall for the purpose of calculating the term of the loan and the payments of principal and interest in respect thereof be deemed to constitute a separate loan made on the day on which that instalment is made receivable by the local authority.

15. No loan and no instalment of a loan shall be made receivable by a local authority at any date later than two years after the date of the application for the loan.

16. The debentures issued by the local authority in respect of the loan shall be in the Form No. 5 in the Second Schedule hereto or to the like effect.

17. Every such debenture shall be executed in pursuance of a resolution of the local authority, and shall be signed by the Mayor or Chairman of the local authority, and countersigned by an officer appointed by the local authority for that purpose. The due execution of every such debenture shall be verified by statutory declaration in the Form No. 6 in the Second Schedule hereto, or to the like effect.

18. A commission fee of one-half per centum on the amount of the loan shall be payable to the Superintendent by the local authority to whom the loan is granted. The said fee shall be paid at the time when the amount of the loan is paid to the local authority; but where the loan is paid to the local authority by instalments, the commission fee shall be apportioned between those instalments, and a proportionate part thereof shall be paid by the local authority at the time when each instalment is received by it.