conversion of such securities into new securities, the existing securities shall be converted
into new securities in the same manner as if application had been made under the last
preceding clause.

9. Dissent from the conversion of any existing securities may be signified at any
   time before the expiration of fourteen days from the date of conversion.

10. The dissent of the holder of any existing securities from the conversion of
    those securities into new securities shall be signified in writing, and shall be deemed to
    be signified when such writing is received by the local authority or by any person
    authorized by the local authority to receive it.

SURRENDER OF CONVERTED SECURITIES, AND PAYMENT OF INTEREST THEREON.

11. The holder of any existing securities converted into new securities (whether
    the conversion is on application or after failure to dissent) shall not be entitled to
    demand payment of any interest payable on the existing securities, or to receive the
    new securities or any instalment of principal and interest payable in respect thereof,
    until he has surrendered the existing securities to the local authority.

12. Subject to the provisions of the last preceding clause, the interest on any such
    existing securities for the period ending on the date of conversion shall be payable not
    later than one month from the date of conversion.

NEW SECURITIES.

13. The aggregate amount of principal secured by the new securities to be issued
    in conversion of existing securities to which this Order applies (including new securities
    to be issued by way of premium), together with interest thereon computed at the rate
    of four and one-quarter per centum per annum, shall be repaid by equal half-yearly
    instalments over a period of nineteen years, the first half-yearly instalment to fall due
    and be paid on the first day of February, one thousand nine hundred and thirty-five,
    and subsequent half-yearly instalments to fall due and be paid on every first day of
    August and first day of February thereafter, the last half-yearly instalment to fall due and
    be paid on the first day of August, one thousand nine hundred and fifty-three.

14. (1) New securities for the amount of each half-yearly instalment of principal
    and interest referred to in the preceding clause shall be issued in the form of debentures
    in the form numbered (2) in the Second Schedule hereto.

(2) All new debentures shall be numbered consecutively, and as between the holders
thereof shall rank equally.

(3) Every new debenture shall state on its face the fact that the holder has no
claim in respect thereof upon the Government or public revenues of New Zealand.

(4) Every new debenture shall be signed by the Mayor, countersigned by the
Treasurer or some other officer appointed by the local authority for the purpose, and
sealed with the common seal of the local authority.

PREMIUMS.

15. The holder of any existing securities to which this Order applies 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 Third Schedule hereto.

16. (1) Every premium to which any person is entitled under the last preceding
    clause shall be satisfied by issuing to him additional new securities for the amount of
    such premium.

(2) 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.

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

SINKING FUND FOR UNCONVERTED SECURITIES.

18. (1) If dissent is signified in accordance with the provisions of this Order from
    the conversion of any existing securities issued in respect of the 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 funds 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.

19. (1) The existing sinking fund of the loan referred to in the First Schedule
    hereto shall be applied by the Commissioners 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; and