3300
THE NEW ZEALAND GAZETTE.
[No. 83

the same proportion which the amount of those securities issued in respect of the loan
which are outstanding at the date of conversion and to which this Order does not apply
bears to the amount of the existing securities to which this Order does apply.

(2) The first part of the sinking fund referred to in the last preceding subclause
shall continue to be held and administered by the Commissioners as the sinking fund
for those outstanding securities issued in respect of the loan to which this Order does
not apply, and the second part shall be applied by the Commissioners in accordance
with the provisions of the next succeeding clause in all respects as if such part were,
in respect of such loan, the whole of the existing sinking fund thereof.

23. The existing sinking fund of every loan 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 to which this Order applies;

(b) Secondly, in payment, in accordance with the directions of the local authority,
of any sum to meet the cost and charges of and incidental to the conversion
of any existing securities to which this Order applies, including any cash
payments required by this Order to be made in respect of premiums; and,

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

CONSOLIDATED SPECIAL RATE.

24. (1) As a security for the new securities and the unconverted securities the
    local authority shall forthwith, by resolution gazetted (in the form numbered (4) 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 interest and sinking fund in
    respect of such 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
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, and as if the local authority were a local authority and its district a district
under that Act.

(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.

25. 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 reference 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.

26. 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.