22. The existing sinking fund of every loan referred to in the First
    Schedule hereto (other than the loan 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; and
    (b) Secondly, 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.

CONSOLIDATED SPECIAL RATE.

23 (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.

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.

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
in respect of the above-mentioned loans that the [Name of local authority] intends
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 4½ per cent. per annum.

The conversion will take effect from [Date of conversion].

Application for conversion must be made in writing and be accompanied
by the securities to which it relates.

Dissent from the conversion of any existing debentures or other securities
may be signified by the holder by notice in writing delivered to [Name or
designation and address of at least one person authorized to receive dissents] on
or before the _ day of ___, 19_____.