JUNE 22.] THE NEW ZEALAND GAZETTE. 2001

(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) Subject to the provisions of this clause as to payment in cash, 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, or so much
    thereof as is not paid in cash, as the case may be.

(2) The local authority shall pay in cash the amount (if any) required to reduce to
the nearest multiple of five pounds the aggregate amount of all such premiums to
which any person is entitled, and may, if it thinks fit, pay in cash the whole or any part
of the balance of any such aggregate amount.

(3) 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, and charged to
the appropriate account.

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

22. The existing sinking fund of every loan referred to in the First Schedule hereto
    shall be applied by the Commissioners 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 issued in respect
of such loan ;

(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
premiums to which any holder is entitled on the conversion of any existing
securities to which this Order applies (whether issued in respect of such loan
or of any other loan referred to in the First Schedule hereto) ;

(c) Thirdly, in payment in accordance with the directions of the local authority,
of the costs and charges (not exceeding in the aggregate one hundred pounds)
of and incidental to the conversion of existing securities to which this Order
applies (whether issued in respect of such loan or of any other loan referred
to in the First Schedule hereto) ; and

(d) Fourthly, 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.