APRIL 5.]

THE NEW ZEALAND GAZETTE.

921

(2) The local authority shall pay in cash the amount (if any) required to reduce to
the nearest multiple of ten pounds the aggregate amount of all such premiums to which
any person is entitled, and may, if it thinks fit, pay in cash the whole or any part of
the balance of any such aggregate amount.

(3) All payments of cash in accordance with the last preceding subclause shall
be made by the local authority out of the local fund, and charged to the appropriate
account.

(4) The power of the local authority to issue new securities in accordance with
this Order shall be deemed to include the power to issue any additional new securities
required for the purposes of this clause.

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 the Public Trustee shall
    be the Commissioner.

(2) For such purpose the local authority shall permanently appropriate and shall
pay to the Commissioner of the consolidated sinking fund on each first day of October
following the date of conversion up to and including the first day of October,
one thousand nine hundred and sixty-five, a contribution of two thousand
nine hundred and forty pounds, increased in respect of each contribution by
a sum equal to four and one quarter per centum of the aggregate amount
of new securities redeemable up to and including the first day of October 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 con-
tribution have, pursuant to the provisions of the next succeeding clause, been paid to
any sinking funds for unconverted securities. The proviso to subsection three of section
twenty of the Electric-power Boards Amendment Act, 1927, shall not apply to any such
part of the contribution as exceeds two thousand nine hundred and forty pounds.

(3) The provisions of subsections four, five, and six of section ninety-five of the
Local Bodies' Loans Act, 1926, shall apply with respect to such 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 twenty-three 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 pro-
    vision 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 accumula-
tions 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. (1) The existing sinking fund held by the Public Trustee in respect of the loan
    of one hundred thousand pounds first mentioned in the First Schedule hereto shall
    be applied by the Commissioners 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, as far as it will extend, to the nearest multiple of ten pounds in
repayment as at the date of conversion of the principal secured by the
existing securities ; and

(c) Thirdly, 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 (b) of the last preceding subclause shall be paid by the local
authority out of the local fund.

23. The existing sinking fund of every loan referred to in the First Schedule
    (other than the loan 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; and