Dec. 18.] THE NEW ZEALAND GAZETTE. 3397

(2) 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 in that behalf
shall be made by the local authority out of the local fund and charged to the appropriate
account.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

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

SINKING FUND FOR UNCONVERTED SECURITIES.

18. (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
    the 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.

19. (1) The existing sinking fund of the loan 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 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 ;
    (b) Secondly, in payment in accordance with the directions of the local authority of
    any cash payments required or authorized by this Order to be made in respect
    of premiums ;
    (c) Thirdly, so far as it will extend, in repayment 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 (c) of the last preceding subclause shall be paid by the local
    authority out of the local fund.

CONSOLIDATED SPECIAL RATE.

20. (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 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. Such special rate
    shall be made and levied over the whole of that area of the district of the local authority
    over any part of which any existing special rate in respect of the loan specified in the
    First Schedule hereto was made and levied.
    (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 principal,
    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 heretofore made in
    respect of any existing securities to which this Order applies shall cease to be a security
    for the existing securities to which this Order applies.

SECURITIES HELD BY TRUSTEES.

21. 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.

22. 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.