2816
THE NEW ZEALAND GAZETTE.
[No. 68

(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) Subject to the provisions of this clause as to payment in cash, 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, or so much thereof as is not paid in cash, as the case may be.

(2) The local authority shall pay in cash the amount (if any) required to
reduce to the nearest multiple of five pounds the aggregate amount of all such
premiums to which any person is entitled, and may, if it thinks fit, pay in cash
the whole or any part of the balance of any such aggregate amount.

(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 moneys
raised pursuant to the authority conferred by the next succeeding clause or out
of the local fund.

(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 purpose of this clause.

19. (1) For the purpose of providing for cash premium payments the local
    authority may create, issue, and sell at par new securities for an aggregate
    amount not exceeding three thousand pounds, redeemable at par on such one or
    more of the maturity dates set out in the Third Schedule hereto, as may be
    determined by the local authority. The rate of interest payable on any new
    security issued pursuant to the authority conferred by this clause shall, notwith-
    standing anything to the contrary contained in clause fourteen of this Order, be
    such rate not exceeding four and one-quarter per centum per annum as may be
    determined by the local authority.

(2) Pending the raising of the moneys by the sale of any such new securities
the local authority may borrow the said sum of three thousand pounds or any
part thereof by the hypothecation of such new securities at a rate of interest
not exceeding five per centum per annum.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

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

CONSOLIDATED SINKING FUND FOR NEW SECURITIES.

21. (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 the first day
of May, one thousand nine hundred and thirty-six, and on each first day of May
thereafter up to and including the first day of May, one thousand nine hundred
and sixty-nine, a contribution of five hundred and twenty-seven 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 May 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:
Provided that in respect of any securities transferred to the Public Trustee by the
Commissioners of any existing sinking fund pursuant to the provisions of clause
twenty-three hereof the Public Trustee may, pending the repayment of the moneys
secured by such securities, make such charges for the collection of interest payable
thereunder and otherwise for the management of such securities as are for the
time being prescribed in that behalf by regulations under the Public Trust
Office Act, 1908.

SINKING FUND FOR UNCONVERTED SECURITIES.

22. (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 securi-
    ties 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 accumulation 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.