MAY 4.] THE NEW ZEALAND GAZETTE. 1299

thirty-two pounds, reduced in respect of each contribution 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.

(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.

SINKING FUND FOR UNCONVERTED SECURITIES.

20 (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
provision 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.

21. The existing sinking fund of every loan referred to 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 ; 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.

22. (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 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.

(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.

BROKERAGE.

23. 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.

Name. Amount. Rate of Interest. Date of Maturity.
| Original. | Existing. |
| Per Cent. | Per Cent. |
Clandlands Streets Loan, £10,000 4½ 4½ 1st April, 1948.
Clandlands Streets Loan, £1,000 4½ 4½ 1st April, 1948.
Total .. £11,000

C