APRIL 18.] THE NEW ZEALAND GAZETTE. 1023

APPLICATION OF EXISTING SINKING FUNDS.

22. (1) The existing sinking fund of the loans numbered 19, 20, 23, 24, and 25 in
    the First Schedule hereto shall be applied by the Commissioner thereof in or towards
    making the following payments, in the following order or 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
    (b) Secondly, as far as it will extend in repayment as at the date of conversion of
    the principal secured by the existing securities.
    (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 loan numbered 13 in the First Schedule 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 authorized by this Order to be made in respect of
    premiums to which any person is entitled on the conversion of any existing
    securities to which this Order applies (whether issued in respect of the said loan
    or in respect 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.

24. The existing sinking fund of every loan referred to in the First Schedule (other
    than the loans referred to in the last two preceding clauses) 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
    (b) Secondly, 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 to provide for the payment of
    interest, sinking fund, and other charges in respect of such securities. Such special
    rate shall be made and levied over the whole of that area of the district of the local
    authority over any part of which any existing special rate, in respect of any of the loans
    specified in the First Schedule hereto was made and levied.
    (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, 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.

26. 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.

27. 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.