Nov. 2.] THE NEW ZEALAND GAZETTE. 2667

secured by such unconverted securities bears to the aggregate amount of principal secured
by all the existing securities issued in respect of such loan, and shall pay such sum to the
Commissioners yearly and every year until the maturity date of such unconverted securi-
ties, or until the Commissioners are satisfied that the accumulations of sinking fund will
suffice to redeem such securities at maturity.

(3) The first of such yearly payments shall be made not later than one year after
the date on which the last annual contribution payable before the date of conversion
to the existing sinking fund of such loan was payable.

(4) Subject to the provisions of this Order, the provisions of sections forty to
forty-four of the Local Bodies’ Loans Act, 1926, shall, so far as applicable and with
all necessary modifications, apply with respect to such sinking fund :

Provided that nothing in the said sections or in this Order shall authorize the
removal or suspension of the Public Trustee as Commissioner of any sinking fund.

APPLICATION OF EXISTING SINKING FUNDS.

19. (1) The existing sinking fund of every loan referred to in the First Schedule
    hereto shall be applied by the Commissioners thereof in or towards making the following
    payments, in the following order of priority, namely :—

(a) Firstly, in transferring to the Commissioners of the sinking fund hereinbefore
required to be created for the unconverted securities issued in respect of
such loan a sum which bears the same proportion to the amount of such
existing sinking fund at the date of conversion as the aggregate amount of
principal secured by such unconverted securities bears to the aggregate
amount of principal secured by all the existing securities issued in respect
of such loan ;

(b) Secondly, in payment in accordance with the directions of the local authority
of an amount not exceeding three hundred pounds as costs and charges of
and incidental to the conversion of any existing securities and in payment
of any cash payments required or authorized by this Order to be made
in respect of premiums ;

(c) Thirdly, so far as it will extend in repayment as at the date of conversion of
the principal secured by the existing securities.

(2) Interest up to the date of conversion on any existing securities so repaid in
accordance with paragraph (c) of the last preceding subclause shall be paid by the
local authority out of the local fund.

CONSOLIDATED SPECIAL RATE.

20. (1) As a security for the new securities and the unconverted securities the
    local authority shall forthwith, by resolution gazetted (in the form numbered (3) in the
    Second Schedule hereto), make and levy a special rate over the whole of the district
    of the local authority to provide for the payment of the half-yearly instalment of
    principal and interest in respect of the new securities and of interest and sinking fund
    in respect of the unconverted securities.

(2) Subject to the provisions of this Order, the provisions of the Local Bodies’
Loans Act, 1926, and of any other Act shall, so far as applicable and with all necessary
modifications, apply with respect to such special rate, and with respect to the principal,
interest, and other charges in respect of such securities, as if such special rate were
made and levied in respect of a special loan raised under Part I of the said Local
Bodies’ Loans Act, 1926, and the local authority was a local authority and the
district a district within the meaning of that Act.

(3) Upon the making of such special rate every special rate theretofore made in
respect of any existing securities to which this Order applies shall cease to be a security
for such existing securities.

SECURITIES HELD BY TRUSTEES.

21. The provisions of sections twenty-two, twenty-three, and twenty-four of the
    New Zealand Debt Conversion Act, 1932-33 (relating to the adjustment of premiums as
    between capital and income and to the powers of trustees and other persons in relation
    thereto), shall apply with respect to existing securities converted into new securities in
    accordance with this Order in the same way as they apply with respect to securities
    converted under that Act, save that the references in the said section twenty-two to the
    first day of April, one thousand nine hundred and thirty-three, shall be construed as
    references to the day following the date of conversion.

BROKERAGE.

22. The local authority shall not, in respect of the conversion into new securities
    of any existing securities to which this Order applies, enter into any contract for the
    payment of brokerage at a rate exceeding one-quarter per centum of the amount of such
    existing securities.

FIRST SCHEDULE.

LOANS TO BE CONVERTED.