DEC. 7.]

(2) The following provisions of this Order shall come into force if such a resolution
is passed and confirmed as aforesaid, but not otherwise:
Provided that a certificate signed by the Chairman of the local authority and
published in the Gazette to the effect that such a resolution has been duly passed and
confirmed shall be conclusive evidence of the facts therein certified.

DATE OF CONVERSION.

5. The date from which the conversion of existing securities into new securities
   shall take effect shall be the first day of April, one thousand nine hundred and thirty-
   four.

NOTICE TO HOLDERS OF EXISTING SECURITIES.

6. The local authority shall cause a notice in the form numbered (1) in the Second
   Schedule hereto, together with a copy of this Order, to be delivered not later than four-
   teen days prior to the date of conversion to the holders of the existing securities to
   which this Order applies.

RIGHT TO APPLY FOR OR DISSENT FROM CONVERSION.

7. The holder of any existing securities to which this Order applies may make
   application to the local authority in writing for the conversion of such securities into
   new securities in accordance with this Order. Every application under this clause shall
   be accompanied by the securities to which it relates.

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 in respect thereof,
    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 repayable by equal half-yearly instal-
    ments over a period of twenty-two years, the first half-yearly instalment to fall due
    and be paid on the first day of October, one thousand nine hundred and thirty-four,
    and subsequent half-yearly instalments to fall due and be paid on every first day of
    April and first day of October thereafter, the last half-yearly instalment to fall due
    and be paid on the first day of April, one thousand nine hundred and fifty-six.

14. (1) New securities for the amount of the half-yearly 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.

15. In any case where the local authority has heretofore given to the holder of
    existing securities to which this Order applies any deed of mortgage or charge over all
    or any of its assets or revenues the local authority shall, if so required by such holder,
    execute in his favour a similar deed in respect of the new securities issued in conversion
    of such existing securities. On the execution of such last-mentioned deed the existing
    deed of mortgage or charge shall be surrendered to the local authority.

PREMIUMS.

16. As the existing securities to which this Order applies bear 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, the holders thereof 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, without premiums.

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 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 the Public Trustee shall be the Commissioner.

(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 conversion, to the existing sinking fund of such loan as the aggregate amount of
principal secured by such unconverted securities bears to the aggregate amount of