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 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 outstanding 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 (including new securities
    to be issued by way of premium), 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-three years, the first half-yearly instalment to fall
    due and be paid on the first day of March, one thousand nine hundred and thirty-five,
    and subsequent half-yearly instalments to fall due and be paid on every first day of
    September and first day of March thereafter, the last half-yearly instalment to fall due
    and be paid on the first day of September, one thousand nine hundred and fifty-seven.

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 Chairman, 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.

PREMIUMS.

15. The holder of any existing securities to which this Order applies 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 Third Schedule hereto.

16. (1) 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.

(2) 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.

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

SINKING FUND FOR UNCONVERTED SECURITIES.

18. (1) If dissent is signified in accordance with the provisions of this Order from
    the conversion of any existing securities issued in respect of the loan 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 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.