loan to which that clause applies, and such first part of the sinking fund were the sinking
fund of such separate loan, and the second part of such sinking fund shall be retained
by the Commissioners as a sinking fund for those existing securities issued in respect of
the loan to which the Act does not apply.

23. (1) Subject to the provisions of clause twenty-two hereof the existing sinking
    fund of every loan referred to in the First Schedule hereto shall be applied by the
    Commissioners thereof 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);

(c) Thirdly, in payment in accordance with the directions of the local authority
of the costs and charges (not exceeding in the aggregate three hundred pounds)
of and incidental to the conversion of 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);

(d) Fourthly, in repayment at the date of conversion, in accordance with the directions
of the local authority, of the principal secured by any existing securities to
which this Order applies (whether issued in respect of such loan or any other
loan referred to in the First Schedule hereto), provided that nothing herein
contained shall be construed as requiring the holder of any such existing
securities so to accept repayment at the date of conversion.

(e) Fifthly, in transferring the balance to the Commissioners 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.

24. 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.

25. 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.

FIRST SCHEDULE.
LOANS TO BE CONVERTED.

N.B.—Of the debentures issued in respect of the No. 4 Loan this Order applies only
to those bearing the following serial numbers:

SECOND SCHEDULE.
FORMS.
(1) Notice.
[Name of local authority.]
CONVERSION under the Local Authorities Interest Reduction and Loans Conversion Act,
1932–33, and the Loans Conversion Order, 19 , of debentures or other securities
issued in respect of the following loans [Particulars of loans].
Notice is hereby given to the holders of debentures or other securities issued by the
[Name of local authority] in respect of the above-mentioned loans that it is intended to
convert all such debentures or other securities (except those in respect of which dissent
is duly signified) into new debentures having new maturity dates and bearing interest
at 4¼ per cent. per annum.