May 4.] THE NEW ZEALAND GAZETTE. 1303

(2) The local authority may, if it thinks fit, pay in cash the whole or any part of
the premiums to which any person is entitled pursuant to the preceding subclause.
(3) All payment of cash in accordance with the last preceding subclause may be made
by the local authority—
(a) To an amount not exceeding four hundred pounds out of moneys borrowed in
accordance with the next succeeding clause; and
(b) To the extent by which the aggregate of all premiums to which holders are
entitled on the conversion of existing securities to which this Order applies
exceeds four hundred pounds, out of moneys standing at the date of
conversion to the credit of the special rate account of any loan referred to
in the First Schedule hereto.
(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.
19. (1) For the purpose of providing for cash premium payments the local
authority may create, issue, and sell at par new securities for an aggregate amount not
exceeding four hundred pounds, bearing interest at a rate not exceeding four and
one-quarter per centum per annum, and redeemable at par on the first day of July,
one thousand nine hundred and thirty-five.
(2) Pending the raising of the moneys by the sale of any such new securities the local
authority may borrow the said sum of four hundred pounds, or any part thereof, by the
hypothecation of such new securities at a rate of interest not exceeding five per centum
per annum.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

20. The principal and interest in respect of new securities shall be payable in New

Zealand.

CONSOLIDATED SINKING FUND FOR NEW SECURITIES.

21. (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 thirty-first day of
March following the date of conversion up to and including the thirty-first day of March,
one thousand nine hundred and sixty-one, a contribution of three hundred and sixty-three
pounds, increased in respect of each contribution by a sum equal to four per centum of the
aggregate amount of new securities redeemable up to and including the first day of July
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
contribution 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.

22. (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 or part
of such loan to which this Order applies, 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 accumulations 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.

23. (1) 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 in respect of which
the sinking fund is held ; 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.
(2) Where the sinking fund of any loan is at the date of conversion held as security
not only for those existing securities issued in respect of the loan to which this Order
applies, but also for other securities to which this Order does not apply, such sinking
fund shall be equitably apportioned between those securities to which this Order does
so apply and those securities to which this Order does not so apply, and the last
preceding subclause shall, in relation to any such sinking fund, be construed as applying
only to that part of the sinking fund so apportioned to the existing securities to which
this Order applies.