DEC. 7.] THE NEW ZEALAND GAZETTE. 3277

(b) Secondly, in transferring to the Commissioners of the consolidated sinking fund
referred to in the Uawa County Loans Conversion Order, 1933 (No. 2), to be
held as part of such fund such sum as bears the same proportion to the
amount of the existing sinking fund at the date of conversion as the amount
of existing securities issued in respect of the loan and to which that Order
applies bears to the aggregate amount of all the existing securities issued in
respect of the loan; and

(c) Thirdly, as to the balance thereof, in repayment as at the date of conversion of
such securities of the principal secured by existing securities issued in respect
of the loan and to which the provisions of this Order apply.

(2) Interest up to the date of conversion on any 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.

20. (1) The existing sinking fund of the loans referred to in the First Schedule hereto,
    other than the loan referred to in the preceding clause, shall be applied by the Com-
    missioners 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 to which this
Order applies issued in respect of such loan :

(b) Secondly, in so far as it extends in repayment as at the date of maturity of the
principal secured by existing securities issued in respect of the loan and to
which this Order applies.

(2) Interest up to the date of conversion on any securities 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.

21. (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, sinking fund, and
    other charges 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 existing securities.

SECURITIES HELD BY TRUSTEES.

22. 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.

23. 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.

• Part only of this loan is subject to this Order.