Dec. 7.] THE NEW ZEALAND GAZETTE. 3257

18. (1) Subject to the provisions of this clause as to payment in cash, every
    premium to which any person is entitled under the last preceding clause shall be satisfied
    by issuing to him additional new securities for the amount of such premium, or so much
    thereof as is not paid in cash, as the case may be.

(2) The local authority shall pay in cash the amount (if any) required to reduce to
the nearest multiple of one hundred pounds the aggregate amount of all such premiums
to which any person is entitled, and may, if it thinks fit, pay in cash the whole or any
part of the balance of any such aggregate amount.

(3) All payments of cash in accordance with the last preceding subclause that are
not made out of any sinking fund pursuant to the provisions of this Order (if any) in
that behalf shall be made by the local authority out of the local fund, and charged to
the appropriate account.

(4) The power of the local authority to issue new securities in accordance with
this Order shall be deemed to include the power to issue any additional new securities
required for the purposes of this clause.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

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

CONSOLIDATED SINKING FUND FOR NEW SECURITIES.

20. (1) In order to provide funds for the repayment of the new securities the local
    authority shall forthwith make provision for the creation, pursuant to a resolution of
    the local authority, of a consolidated sinking fund, of which the Public Trustee shall
    be the Commissioner.

(2) For such purpose the local authority shall permanently appropriate and pay
to the Public Trustee on or before each of the maturity dates specified in the Third
Schedule hereto a contribution of £339 increased by an amount equal to four and one-
quarter per centum of the aggregate amount of all new securities redeemable up to the
maturity date preceding that to which the contribution relates.

(3) The provisions of subsections four, five, and six of section ninety-five of the
Local Bodies' Loans Act, 1926, shall apply with respect to such sinking fund.

SINKING FUND FOR UNCONVERTED SECURITIES.

21. (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 the persons who at the date of conversion
    were the Sinking Fund Commissioners of such 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 accumula-
tions 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.

22. Each of the existing sinking funds of the first and second loans 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) 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; and

(b) Secondly, in transferring the balance to the Commissioner of the consolidated
sinking fund hereinbefore required to be created for the new securities, to
be held as part of that sinking fund.

23. (1) The existing sinking fund of the last loan referred to in the First Schedule
    shall be applied by the Commissioners thereof as follows:-

(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, in making, in accordance with the directions of the local authority,
any cash premium payments required or authorized by this Order to be
made to any holder of existing securities issued in respect of such loan; and

(c) Thirdly, in transferring the balance to the Commissioner of the consolidated
sinking fund hereinbefore required to be created for the new securities, to
be held as part of that sinking fund.