2368
THE NEW ZEALAND GAZETTE.
[No. 61

pursuant to the authority conferred by this clause shall, notwithstanding anything to
the contrary contained in clause fourteen of this Order, be such rate not exceeding four
and one-quarter per centum per annum as may be determined by the local authority.
(2) Pending the raising of the moneys by the sale of any such new securities the
local authority may borrow the said sum of six thousand one hundred pounds or any
part thereof by the hypothecation of such new securities at a rate of interest not exceeding
five per centum per annum.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

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

CONSOLIDATED SINKING FUND FOR NEW SECURITIES.

21. (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-four, a contribution of one thousand
    three hundred and eighty 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 fund 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.

22. (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 in the First
    Schedule hereto for which a sinking fund was provided, 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 in respect of which such existing sinking
    fund is held, 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 accumulations 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 FUND.

23. For the purposes of the next two succeeding clauses the sinking fund of every
    loan in the First Schedule hereto some only of the existing securities issued in respect
    whereof are held by the Public Trustee shall be divided into two parts the first of which
    shall bear to the second the same proportion which the amount of the existing securities
    so held by the Public Trustee bears to the amount of the existing securities held by
    persons other than the Public Trustee. The said parts shall be applied as follows :—
    (a) The first part of such sinking fund shall be applied by the Commissioner thereof
    in accordance with the provisions of clause twenty-four hereof as if the
    existing securities issued in respect of the loan and held by the Public Trustee
    were a separate loan held by the Public Trustee and such first part of the
    sinking fund were the sinking fund of such separate loan.
    (b) The second part of such sinking fund shall be applied by the Commissioner
    thereof in accordance with the provisions of clause twenty-five hereof as if
    the existing securities issued in respect of the loan and held by persons other
    than the Public Trustee were a separate loan within the meaning of that
    clause and such second part of the sinking fund were the sinking fund of
    such separate loan.

24. (1) Subject to the provisions of clause twenty-three hereof, the existing sinking
    fund of every loan in the First Schedule hereto the securities issued in respect of
    which are held by the Public Trustee, shall be applied by the Commissioner thereof in
    or towards making the following payments, in the following order of priority, namely :—
    (a) First, in transferring to the Commissioner 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 ;
    (b) Secondly, as far as it will extend to the nearest multiple of five pounds, in repay-
    ment as at the date of conversion of the principal secured by the existing
    securities issued in respect of such loan and held by the Public Trustee ; and
    (c) Thirdly, 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.
    (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.