380
THE NEW ZEALAND GAZETTE.
[No. 10

(a) The first part of such sinking fund shall be applied by the Commissioner thereof
in accordance with the provisions of clause twenty-four hereof as if the existing
securities issued in respect of the loan and held by the Public Trustee were
a separate loan and such first part of the sinking fund were the sinking fund
of such separate loan ;

(b) The second part of such sinking fund shall be applied by the Commissioner
thereof in accordance with the provisions of clause twenty-five hereof as if
the existing securities issued in respect of the loan and held by persons other
than the Public Trustee were a separate loan within the meaning of that
clause and such second part of the sinking fund were the sinking fund of such
separate loan.

24. (1) The existing sinking fund of every loan referred to in the First Schedule
    hereto which is held by the Public Trustee 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 ;

(b) Secondly, in payment of the cash premiums payable in respect of the conversion
of the existing securities issued in respect of such loan ;

(c) Thirdly, as far as it will extend, to the nearest multiple of one hundred pounds
in repayment as at the date of conversion of the principal secured by the
existing securities issued in respect of such loan ; and

(d) Fourthly, 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.

(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.

25. The existing sinking fund of every loan referred to in the First Schedule
    (other than the loans referred to in the last preceding clause) shall be applied by the
    Commissioners thereof, so far as it will extend, 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 ;

(b) Secondly, in payment, in accordance with the directions of the local authority,
of cash premiums payable on the conversion of existing securities (not being
securities held by the Public Trustee) to which this Order applies (whether
such existing securities are issued in respect of the said loan or any other
loan referred to in the First Schedule hereto) : Provided that the aggregate
amount of all sums payable in accordance with this paragraph shall in no
case exceed one hundred pounds ; 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.

26. (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, sinking fund, and other
    charges 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.

27. 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.