MAY 31.] THE NEW ZEALAND GAZETTE. 1597

(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 July
    following the date of conversion up to and including the first day of July, one
    thousand nine hundred and sixty-two, a contribution of six hundred and sixty-
    three 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 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.

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 of every loan referred to in the First Schedule
    hereto the existing securities issued in respect of which are held by the Public Trustee
    shall be applied by the Commissioner thereof in or towards making the following pay-
    ments, 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
    such sinking fund is held ;
    (b) Secondly, as far as it will extend to the nearest multiple of £5 in repayment as
    at the date of conversion of the principal secured by the existing securities
    issued in respect of such loan ; 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 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 in respect of which
    such sinking fund is held ;
    (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 pre-
    miums 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 of any other loan specified 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.