JULY 13.] THE NEW ZEALAND GAZETTE. 2171

behalf, doth hereby consent to the issue by the said local authority of new securities
in conversion of any existing securities to which this Order applies, and with respect
to such conversion doth hereby make the following provisions.

PRELIMINARY.

1. This Order may be cited as the Taumarunui Borough Loans Conversion Order, 1934
   (No. 2).
2. In this Order, unless the context otherwise requires,—
   “ The Act ” means the Local Authorities Interest Reduction and Loans Conversion
   Act, 1932-33 :
   “ The date of conversion ” means the date specified in clause five of this Order :
   “ Existing securities ” means debentures or other securities issued by the local
   authority before the first day of April, one thousand nine hundred and
   thirty-three ; and includes any securities issued on or after that date, but
   before the date of conversion, in replacement (as that term is defined in the
   Act) of any such securities :
   “ The local authority ” means the Taumarunui Borough Council :
   “ New securities ” or “ new debentures ” means securities or debentures issued in
   accordance with this Order in conversion of existing securities to which this
   Order applies :
   “ Unconverted securities ” means existing securities to which this Order applies
   and in respect of which dissent from conversion is signified in accordance
   with the provisions of this Order.

APPLICATION OF ORDER.

3. This Order shall apply to all existing securities issued in respect of the loans
   specified in the First Schedule hereto.

SPECIAL RESOLUTION OF LOCAL AUTHORITY.

4. (1) If the local authority so resolves by a resolution passed and confirmed as
   provided by subsection two of section nine of the Act, it may, subject to and in accord-
   ance with the provisions of this Order, issue new securities in conversion of existing
   securities to which this Order applies.
   (2) The following provisions of this Order shall come into force if such a resolution
   is passed and confirmed as aforesaid, but not otherwise :
   Provided that a certificate signed by the Mayor and published in the Gazette to the
   effect that such a resolution has been duly passed and confirmed shall be conclusive
   evidence of the facts therein certified.

DATE OF CONVERSION.

5. The date from which the conversion of existing securities into new securities
   shall take effect shall be the second day of October, one thousand nine hundred and
   thirty-four.

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-four years, the first
    such half-yearly instalment to fall due and be paid on the second day of April, one
    thousand nine hundred and thirty-five, and subsequent half-yearly instalments on
    every second day of October and second day of April thereafter, the last half-yearly
    instalment to fall due and be paid on the second day of October, one thousand nine
    hundred and fifty-eight.