928

THE NEW ZEALAND GAZETTE.

[No. 22

(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) For the purposes of the next two succeeding clauses the existing sinking fund
    of every loan set out in the First Schedule hereto, of which the Public Trustee is holder
    of some only of the existing securities issued in respect thereof, shall be divided into two
    parts, the first of which shall bear to the second the same proportion which the amount
    of the existing securities so held by the Public Trustee bears to the amount of the
    existing securities held by persons other than the Public Trustee. The said parts shall
    be applied as follows :—

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

23. (1) The existing sinking fund of every loan in the First Schedule hereto, the
    debentures issued in respect of which are held by the Public Trustee, shall be applied
    by the Commissioner thereof in or toward 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, as far as it will extend to the nearest multiple of five 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.

24. 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 any cash payments required by this Order to be made in respect of
premiums whether in respect of such loan or of any other loan referred to in
the First Schedule hereto ; 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.

CONSOLIDATED SPECIAL RATE.

25. (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.

(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.