In the event of any existing securities being repaid out of moneys in any existing
sinking fund pursuant to the provisions of clause 23 (d) of this Order, each of the sums
set opposite the first three maturity dates in the Third Schedule hereto shall be deemed
for the purpose of this subclause to be reduced by a sum equal to one third of the aggregate
amount of principal represented by the existing securities so repaid, and for the like
purpose the total amount specified in such Third Schedule shall be deemed to be
reduced by the aggregate amount of such principal.
(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. (1) The holder of any existing securities bearing interest at a rate which, as
    reduced in accordance with Part I of the Act, does not exceed the rate of interest payable
    on the new securities 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.
    (2) The holder of any existing securities bearing interest at a rate which, as reduced
    in accordance with Part I of the Act, exceeds the rate of interest payable on the new
    securities 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 pursuant to the provisions of this Order 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 such persons as the local
    authority appoints shall be the Commissioners.
    (2) For such purpose the local authority shall permanently appropriate and shall
    pay to the Commissioners of the consolidated sinking fund on each first day of November
    following the date of conversion up to and including the first day of November, one
    thousand nine hundred and forty-nine, a contribution of eight thousand seven hundred
    pounds, and on the first day of November, one thousand nine hundred and fifty, a contri-
    bution equal in amount to the principal secured by the new securities maturing on such
    date, reduced in respect of each contribution (a) 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 funds
    for unconverted securities, and (b) by the amount of interest which during the twelve
    months preceding the date of payment of such contribution has accrued on the funds
    for the time being in the hands of the Commissioners of the consolidated sinking fund.
    (3) The provisions of sections forty to forty-four 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 referred to 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 issued in respect of such loan, 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 accumula-
    tions 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.

APPLICATION OF EXISTING SINKING FUNDS.

22. Where the whole of the existing securities issued in respect of any loan specified
    in the second column of the First Schedule hereto and outstanding at the date of conver-
    sion are not existing securities to which the Act applies, the existing sinking fund of such
    loan shall be divided into two parts, the first of which shall bear to the second the
    same proportion which the amount of the outstanding existing securities to which the Act
    applies bears to the amount of the outstanding existing securities to which the Act
    does not apply. The first part of such sinking fund shall be applied by the Commissioners
    thereof in accordance with the provisions of clause twenty-three hereof as if those
    existing securities issued in respect of the loan to which the Act applies were a separate