SEPT. 28.] THE NEW ZEALAND GAZETTE. 3041

shall bear to the second the same proportion which the amount of the existing securities
so held by the Public Trustee bears to the amount of the existing securities held by
persons other than the Public Trustee. The said parts shall be applied as follows :—
(a) The first part of such sinking fund shall be applied by the Commissioner thereof
in accordance with the provisions of clause twenty-three hereof as if the
existing securities issued in respect of the loan and held by the Public Trustee
were a separate loan to which that clause applies and such first part of the
sinking fund were the sinking fund of such separate loan.
(b) The second part of such sinking fund shall be applied by the Commissioner
thereof in accordance with the provisions of clause twenty-four hereof as if
the existing securities issued in respect of the loan and held by persons other
than the Public Trustee were a separate loan within the meaning of that
clause and such second part of the sinking fund were the sinking fund of
such separate loan.

23. (1) Subject to the provisions of clause twenty-two hereof, the existing sinking
    fund of every loan in the First Schedule hereto the securities issued in respect of
    which are held by the Public Trustee, shall be applied by the Commissioner thereof in
    or towards making the following payments, in the following order of priority, namely :—
    (a) First, in transferring to the Commissioner 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, as far as it will extend to the nearest multiple of five pounds, in repay-
    ment as at the date of conversion of the principal secured by the existing
    securities issued in respect of such loan and held by the Public Trustee ; 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.
    (2) Interest up to the date of conversion on any existing securities so repaid in
    accordance with paragraph (b) of the last preceding subclause shall be paid by the local
    authority out of the local fund.

24. Subject to the provisions of clause twenty-two hereof, the existing sinking fund
    of every loan referred to in the First Schedule hereto (other than the loans referred
    to in the last preceding clause) 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 (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 one hundred and fifty
    pounds) of and incidental to the conversion of existing securities to which
    this Order applies (whether issued in respect of the said loan or of any other
    loan referred to in the First Schedule hereto), or to which the Glen Eden
    Town Board Loans Conversion Order, 1934 (No. 2), applies ; and
    (d) Fourthly, 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.

                            CONSOLIDATED SPECIAL RATE.

25. (1) As a security for the new securities and the unconverted securities the
    local authority shall forthwith, by resolution gazetted (in the form numbered (4) in the
    Second Schedule hereto), make and levy a special rate over the whole of the district
    of the local authority to provide for the payment of interest, sinking fund, and other
    charges in respect of such securities.
    (2) Subject to the provisions of this Order, the provisions of the Local Bodies’
    Loans Act, 1926, and of any other Act shall, so far as applicable and with all necessary
    modifications, apply with respect to such special rate, and with respect to the interest
    and other charges in respect of such securities, as if such special rate were made and
    levied in respect of a special loan raised under Part I of the said Local Bodies’ Loans
    Act, 1926.
    (3) Upon the making of such special rate every special rate theretofore made in
    respect of any existing securities to which this Order applies shall cease to be a security
    for such existing securities.

                            SECURITIES HELD BY TRUSTEES.

26. 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.