3246
THE NEW ZEALAND GAZETTE.
[No. 83

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 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 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-four.

14. (1) New securities for the amount of each half-yearly instalment referred to in
    the last preceding clause shall be issued in the form of debentures in the form number (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. 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 premium.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

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

SINKING FUND FOR UNCONVERTED SECURITIES.

17. (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 persons who at the date of conversion are Sinking Fund Commissioners of the
    loan shall be the first 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
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
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:

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.

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

(a) First, 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, 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 (b) of the last preceding subclause shall be paid by the local
authority out of the local fund.

CONSOLIDATED SPECIAL RATE.

19. (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 instalments 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 interest
instalments of principal 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.

(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 securities.

SECURITIES HELD BY TRUSTEES.

20. 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