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
(b) Secondly, as far as it will extend in repayment as at the date of conversion of
the principal secured by the existing securities issued in respect of such loan.
(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.

ADDITIONAL SECURITY.

20. In any case where the local authority has heretofore executed in favour of the
    holder of any existing securities issued in respect of any loan referred to in the First
    Schedule hereto any deed of mortgage or charge over any of its property or revenues
    the local authority shall, on the conversion of such loan, if so required by such holder,
    execute in his favour by way of additional security for the conversion debentures referred
    to in clause thirteen hereof a new deed of mortgage or charge over such property or
    revenues securing the aggregate amount of such conversion debentures and in all other
    respects corresponding as nearly as circumstances will permit to the terms of the existing
    deed.

SECURITIES HELD BY TRUSTEES.

21. The provisions of sections twenty-two, twenty-three, and twenty-four of the
    New Zealand Debt Conversion Act, 1932-33 (relating to the adjustment of premiums as
    between capital and income and to the powers of trustees and other persons in relation
    thereto), shall apply with respect to existing securities converted into new securities in
    accordance with this Order in the same way as they apply with respect to securities
    converted under that Act, save that the references in the said section twenty-two to the
    first day of April, one thousand nine hundred and thirty-three, shall be construed as
    references to the day following the date of conversion.

BROKERAGE.

22. 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.

FIRST SCHEDULE.

LOANS TO BE CONVERTED.

• Less amount of principal repaid up to date of conversion.

SECOND SCHEDULE.

FORMS.

(1) Notice.

[Name of local authority]

CONVERSION under the Local Authorities Interest Reduction and Loans Conversion Act,
1932-33, and the Loans Conversion Order, 19 , of debentures or other securities
issued in respect of the following loans [Particulars of loans].

Notice is hereby given to the holders of debentures or other securities issued by the
[Name of local authority] in respect of the above-mentioned loans that it is intended to
convert all such debentures or other securities (except those in respect of which dissent
is duly signified) into new debentures having new maturity dates and bearing interest
at 4⅓ per cent. per annum.

The conversion will take effect from [Date of conversion].

Application for conversion must be made in writing and be accompanied by the
securities to which it relates.

Dissent from the conversion of any existing debentures or other securities may be
signified by the holder by notice in writing delivered to [Name or designation and
address of at least one person authorized to receive dissents] on or before the day
of , 19 .

If notice of dissent from the conversion of any debentures or other securities is not
received by that date the securities will be converted.

The rate of interest on any debentures or other securities in respect of which dissent
is signified as aforesaid will, by virtue of section 18 of the above-mentioned Act, be reduced
to two-thirds of the original rate as from the [Date of conversion].

Further particulars as to the new debentures and the conversion generally may be
obtained from [Name or designation and address of at least one person authorized to give
particulars.]

Dated the day of , 19 .

, Chairman.

(2) New Debenture.

No.

[Name of local authority], New Zealand.

New debenture, issued pursuant to Part II of the Local Authorities Interest Reduction
and Loans Conversion Act, 1932-33, and the Loans Conversion Order, 19 .
New debenture for £ , payable at , in New Zealand, on the
day of , 19 , issued by the [Name of local authority], New Zealand, under the
above-mentioned Act and Order pursuant to a resolution passed and confirmed by the
said Council [or Board, or as the case may be] as provided by section 9 (2) of the said
Act.

(N.B.—The holder of this debenture has no claim in respect thereof upon the
Government or public revenues of New Zealand.)