350
THE NEW ZEALAND GAZETTE.
[No. 10

(b) £64,000 of new securities in respect of the second loan referred to in the First
Schedule hereto shall be allocated to dates prior to the first day of April,
one thousand nine hundred and fifty-five.

(c) £88,000 of new securities in respect of the third, fourth, and fifth loans referred
to in the First Schedule hereto shall be allocated to dates prior to the first
day of April, one thousand nine hundred and fifty-five.

PREMIUMS.

17. (1) The holder of any existing securities bearing interest at a rate which, as
    reduced in accordance with Part I of the Act, does not exceed the rate of interest payable
    on the new securities shall on the conversion of such securities be entitled to receive
    new securities for the same aggregate amount of principal as is secured by the existing
    securities.

(2) The holder of any existing securities bearing interest at a rate which, as reduced
in accordance with Part I of the Act, exceeds the rate of interest payable on the new
securities shall on the conversion of such securities be entitled to receive new securities
for the same aggregate amount of principal as is secured by the existing securities
and, in addition thereto, shall be entitled to receive a premium on such principal
computed in accordance with the Fourth Schedule hereto.

18. (1) Every premium to which any person is entitled under the last preceding
    clause shall be satisfied by payment of the amount thereof in cash.

(2) All payments of cash in accordance with the last preceding subclause shall be
made out of the existing sinking funds pursuant to the provisions of this Order in that
behalf.

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 such persons as the local
    authority appoints shall be the Commissioners.

(2) For such purpose the local authority shall permanently appropriate and shall
pay to the Commissioners of the consolidated sinking fund on each first day of April
following the date of conversion up to and including the first day of April, one thousand
nine hundred and fifty-five, a contribution of £5,108, increased in respect of each
contribution by a sum equal to four per centum of the aggregate amount of new
securities redeemable up to and including the first day of April preceding the date
on which such contribution is payable, and reduced by the aggregate of the sums
which during the twelve months preceding the date of payment of such contribution
have, pursuant to the provisions of the next succeeding clause, been paid to any sinking
funds for unconverted securities.

(3) The provisions of sections one hundred and fifteen to one hundred and nineteen
of the Harbours Act, 1923, 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 issued in respect of any loan referred to in the
    First Schedule hereto, and to which this Order applies, 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 Sinking Fund Commissioners in respect 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 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 one hundred
and fifteen to one hundred and nineteen of the Harbours Act, 1923, 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. (1) The existing sinking fund of the first 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 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;