Nov. 16.] THE NEW ZEALAND GAZETTE. 2737.

8. If the holder of any existing securities to which this Order applies does not,
   within the time and in the manner provided by this Order, signify his dissent from the
   conversion of such securities into new securities, the existing securities shall be converted
   into new securities in the same manner as if application had been made under the last
   preceding clause.

9. Dissent from the conversion of any existing securities may be signified at any
   time before the expiration of fourteen days from the date of conversion.

10. The dissent of the holder of any existing securities from the conversion of those
    securities into new securities shall be signified in writing, and shall be deemed to be
    signified when such writing is received by the local authority or by any person autho-
    rized by the local authority to receive it.

SURRENDER OF CONVERTED SECURITIES, AND PAYMENT OF INTEREST THEREON.

11. The holder of any existing securities converted into new securities (whether
    the conversion is on application or after failure to dissent) shall not be entitled to
    demand payment of any interest payable on the existing securities, or to receive the
    new securities or any instalment of principal and interest payable thereunder, until he
    has surrendered the existing securities to the local authority.

12. Subject to the provisions of the last preceding clause, the interest on any such
    existing securities for the period ending on the date of conversion shall be payable not
    later than one month from the date of conversion.

NEW SECURITIES.

13. The aggregate amount of new securities issued in conversion of existing
    securities to which this Order applies, together with interest thereon computed at the
    rate of four and one-quarter per centum per annum, shall be repaid by equal half-yearly
    instalments over a period of twenty-seven and a half years, the first half-yearly instal-
    ment to fall due and be paid on the first day of August, one thousand nine hundred and
    thirty-four, and subsequent half-yearly instalments to fall due and be paid on every
    first day of February and first day of August thereafter, the last half-yearly instalment
    to fall due and be paid on the first day of August, one thousand nine hundred and
    sixty-one.

14. (1) New securities for the instalments referred to in the last preceding clause
    shall be issued in the form of debentures in the form numbered (2) in the Second Schedule
    hereto.

(2) All new debentures shall be numbered consecutively, and as between the holders
thereof shall rank equally.

(3) Every new debenture shall state on its face the fact that the holder has no
claim in respect thereof upon the Government or public revenues of New Zealand.

(4) Every new debenture shall be signed by the Chairman, countersigned by the
Treasurer or some other officer appointed by the local authority for the purpose, and
sealed with the common seal of the local authority.

PREMIUMS.

15. (1) The holder of any existing securities bearing interest at a rate which, as
    reduced in accordance with Part I of the Act, does not exceed the rate of interest payable
    on the new securities shall, on the conversion of such securities, be entitled to receive
    new securities for the same aggregate amount of principal as is secured by the existing
    securities.

(2) The holder of any existing securities bearing interest at a rate which, as reduced
in accordance with Part I of the Act, exceeds the rate of interest payable on the new
securities shall on the conversion of such securities be entitled to receive new securities
for the same aggregate amount of principal as is secured by the existing securities,
and, in addition thereto, shall be entitled to receive a premium on such principal com-
puted in accordance with the Third Schedule hereto.

16. (1) Every premium to which any person is entitled under the last preceding
    clause shall be satisfied by payment of the amount thereof in cash.

(2) All payments of cash in accordance with the last preceding subclause shall be
made out of the relative sinking fund pursuant to the provisions of this Order in that
behalf.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

17. The principal and interest in respect of new securities shall be payable in New
    Zealand.

SINKING FUND FOR UNCONVERTED SECURITIES.

18. (1) If dissent is signified in accordance with the provisions of this Order from
    the conversion of any existing securities to which this Order applies issued in respect
    of any loan referred to in the First Schedule hereto, the local authority, in order to
    provide funds for the repayment of the unconverted securities issued in respect of such
    loan, shall forthwith make provision for the creation, pursuant to a resolution of the
    local authority, of a sinking fund, of which such persons as the local authority appoints
    shall be the Commissioners.

(2) For such purpose the local authority shall permanently appropriate a sum which
bears the same proportion to the annual contribution payable, before the date of con-
version, to the existing sinking fund of such loan as the aggregate amount of principal
secured by all 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 securities, 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.