NOTICE TO HOLDERS OF EXISTING SECURITIES.

6. The local authority shall cause a notice in the form numbered (1) in the Second
   Schedule hereto, together with a copy of this Order, to be forwarded by registered
   letter not later than fourteen days before the date of conversion to the holders of the
   existing securities to which this Order applies.

RIGHT TO APPLY FOR OR DISSENT FROM CONVERSION.

7. The holder of any existing securities to which this Order applies may make
   application to the local authority in writing for the conversion of such securities into
   new securities in accordance with this Order. Every application under this clause
   shall be accompanied by the securities to which it relates.

8. If the holder of any existing securities to which this Order applies does not
   within the time and in the manner provided by this Order, signify his dissent from the
   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 (a) at any
   time before the expiration of fourteen days from the date of conversion, or (b) in the
   case of any particular holder, within such further time as the local authority may, on
   account of special circumstances, in its discretion allow.

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 instalment of principal and interest payable in respect of 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 the out-
    standing principal represented by 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, 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 twenty-five years, the first
    such half-yearly instalment to fall due and be paid on the twenty-third day of May,
    one thousand nine hundred and thirty-five, and subsequent half-yearly instalments
    on every twenty-third day of November and twenty-third day of May thereafter, the
    last half-yearly instalment to fall due and be paid on the twenty-third day of November,
    one thousand nine hundred and fifty-nine.

14. (1) New securities for the amount of each half-yearly instalment 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.

15. As the existing securities to which this Order applies bear interest at a rate
    which, as reduced in accordance with Part I of the Act, does not exceed the rate of
    interest payable on the new securities, the holders of such existing securities shall on the
    conversion thereof be entitled to receive new securities for the same aggregate amount of
    principal as is secured by the existing securities, without premium.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

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

CONSOLIDATED SPECIAL RATE.

17. (1) As a security for the new securities and the unconverted securities the
    local authority shall forthwith, by resolution gazetted (in the form numbered (3) in the
    Second Schedule hereto), make and levy a special rate over the whole of the district of
    the local authority to provide for the payment of the half-yearly instalments of principal
    and interest in respect of such securities.

(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.

18. 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.