SEPT. 13.] THE NEW ZEALAND GAZETTE. 2857
(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 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 December
following the date of conversion up to and including the first day of December, one
thousand nine hundred and sixty-six, a contribution of eleven 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 the 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 the 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; 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.