Dec. 7.] THE NEW ZEALAND GAZETTE. 3311

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 for payment on each maturity date referred to in the Third Schedule hereto a sum determined in accordance with the next succeeding subclause, and shall pay such sum to the Public Trustee as a contribution to the consolidated sinking fund on or before the maturity date to which it relates.
    (3) The amount of the contributions referred to in the last preceding subclause shall be as follows:—
    (a) In the case of the sums to be appropriated for payment on the 31st days of March in the years 1935, 1936, and 1937, the sums of £8,955, £7,974, and £6,524 respectively.
    (b) In the case of the sums to be appropriated for payment on the 31st day of March, 1938, and on every succeeding maturity date up to and including the 31st day of March, 1945, the sum of £6,524, increased by an amount equal to 4½ per centum of the aggregate amount of new securities redeemable in the period commencing on the 31st day of March, 1937, and ending on the maturity date preceding that to which the contribution relates.
    (c) In the case of the sums to be appropriated for payment on the 31st day of March, 1946, and every maturity date thereafter, the sum of £1,254, increased by an amount equal to 4½ per centum of the aggregate amount of new securities redeemable in the period commencing on the 31st day of March, 1937, and ending on the maturity date preceding that to which the contribution relates.
    (4) The provisions of subsections four, five, and six of section 95 of the Local Bodies’ Loans Act, 1926, shall apply with respect to such consolidated sinking fund:
    Provided that in respect of any securities transferred to the Public Trustee by the Commissioners of any existing sinking fund pursuant to the provisions of clause 22 hereof the Public Trustee may, pending the repayment of the moneys secured by such securities, make such charges for the collection of interest payable thereunder and otherwise for the management of such securities as are for the time being prescribed in that behalf by regulations under the Public Trust Office Act, 1908.

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 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 principal secured by all the existing securities issued in respect of such loan, and shall pay such sum to the Commissioner yearly and every year until the maturity date of such unconverted securities, or until the Commissioner is 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.

22. The existing sinking fund of every loan referred to in the First Schedule hereto, including any securities in which any such funds may be invested, shall be applied by the respective Commissioners thereof in or towards making the following payments in the following order of priority:—
    (a) In transferring to the Commissioner 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) 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.

CONSOLIDATED SPECIAL RATE.

23. (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.
    (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 be deemed to be cancelled.