MAY 31.] THE NEW ZEALAND GAZETTE. 1609

(2) The holder of any existing securities bearing interest at a rate which, as reduced
in accordance with Part I of the Act, exceeds the rate of interest payable on the new
securities shall on the conversion of such securities be entitled to receive new securities
for the same aggregate amount of principal as is secured by the existing securities,
and, in addition thereto, shall be entitled to receive a premium on such principal
computed in accordance with the Fourth Schedule hereto.
18. (1) Every premium to which any person is entitled under the last preceding
clause shall be satisfied by payment of the amount thereof in cash.
(2) All payments of cash in accordance with the last preceding subclause that
are not made out of any sinking fund pursuant to the provisions of this Order (if any)
in that behalf shall be made by the local authority out of the local fund or out of loan-
moneys raised pursuant to the next succeeding 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 twenty thousand pounds, bearing interest at a rate not exceeding four and
one-quarter per centum per annum, and redeemable at par on such one or more of the
maturity dates (not being later than the first day of July, one thousand nine hundred
and thirty-seven) set out in the Third Schedule hereto as may be determined by the
local authority.
(2) Pending the raising of the moneys by the sale of any such new securities the
local authority may borrow the said sum of twenty thousand 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 first day of July
    following the date of conversion up to and including the first day of July, one thousand
    nine hundred and sixty-eight, a contribution of seven thousand four hundred and eighty
    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, 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.

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