APRIL 5.] THE NEW ZEALAND GAZETTE. 903

(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 every loan in respect of which a sinking fund
    was provided referred to in the First Schedule hereto shall be applied by the Commis-
    sioners 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 (if any) herein-
    before 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) Secondly, as far as it will extend in repayment as at the date of conversion
    the principal secured by the existing securities issued in respect of such loan.
    (2) Interest up to the date of conversion on any existing securities so repaid in
    accordance with paragraph (b) 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 over the whole of the district
    of the local authority to provide for the payment of the half-yearly instalments of
    principal and interest in respect of the new securities and of interest, sinking fund, and
    other charges (or, as the case may be, the instalments of principal and interest) in
    respect of the unconverted 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 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 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.

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.

FIRST SCHEDULE.

LOANS TO BE CONVERTED.

• Less amount of principal repaid up to date of conversion.