(2) The local authority shall so fix the respective maturity dates of the new
securities that the aggregate amount of principal secured by the new securities maturing
on each of such dates shall, if practicable, be a multiple of one hundred pounds, and,
subject thereto, shall, as nearly as may be, bear the same proportion to the aggregate
amount of principal secured by all the new securities as the sum set opposite that
date in the Third Schedule hereto bears to the total amount specified in that Schedule.

(3) Subject to the foregoing provisions of this clause and to the express wish of
any holder who desires to have the maturity date of his securities postponed, the
maturity dates of the new securities shall as nearly as practicable be in the same
chronological order as the maturity dates of the existing securities in conversion of
which they are respectively issued.

PREMIUMS.

17. 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 Fourth Schedule hereto.

18. (1) Every premium to which any person is entitled under the last preceding
    clause shall be satisfied by payment of the amount thereof in cash.

(2) All payments of cash in accordance with the last preceding subclause that are
not made out of any sinking fund pursuance 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.

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-two, a contribution of five 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 October 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.

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 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 FUNDS.

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 or 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.