Aug. 10.] THE NEW ZEALAND GAZETTE. 2563

(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 October
    following the date of conversion up to and including the first day of October, one
    thousand nine hundred and fifty-five, a contribution of eighty-three pounds, reduced
    in respect of each contribution 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.

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 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.

APPLICATION OF EXISTING SINKING FUND.

22. The existing sinking fund of every loan referred to in the First Schedule hereto
    shall be applied by the Commissioners thereof, so far as it will extend, in or towards
    making the following payments, 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 in respect of which
    such sinking fund is held ;
    (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) ; 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.

SECURITIES HELD BY TRUSTEES.

23. 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.

24. 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.