3424

THE NEW ZEALAND GAZETTE.

[No. 80

APPLICATION OF EXISTING SINKING FUNDS.

23. (1) The existing sinking fund of the Road Formation Supplementary Loan of seven thousand five hundred pounds referred to in the First Schedule hereto the securities issued in respect of which are held by the Public Trustee, shall be applied by the Public Trustee as 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; and

(b) Secondly, as far as it will extend in repayment as at the date of conversion of the principal secured by the existing securities issued in respect of such loan.

(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. (1) Out of the existing sinking fund of every loan in the First Schedule hereto (other than the loan referred to in the last preceding clause) of which the Public Trustee is Sinking Fund Commissioner there shall be transferred to the Commissioner of the sinking fund hereinbefore required to be created for the unconverted securities issued in respect of such a 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.

(2) Subject to payment thereout of any sum in accordance with the provisions of the preceding subclause one hereof, the balances of all such sinking funds shall be held by the Public Trustee as one aggregate fund and applied in paying thereout on each first day of December following the date of conversion-

(a) All interest accrued during the preceding twelve months on the amount of the balance of such aggregate fund for the time being in the hands of the Public Trustee; and in addition

(b) The sum of five hundred pounds, or if the amount in the hands of the Public Trustee on the first day of December in any year is less than five hundred pounds, the whole of the amount so held by the Public Trustee.

25. The existing sinking fund of every loan referred to in the First Schedule hereto (other than the loans referred to in clauses twenty-three and twenty-four hereof) 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); and

(c) Thirdly, 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.

26. (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 to provide for the payment of interest, sinking fund, and other charges in respect of such securities. Such special rate shall be made and levied over the whole of the district of the local authority with the exception of that portion of the County of Eden included in the said district by Order in Council published in the Gazette on the thirtieth day of September, 1926.

(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.

27. 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.

28. 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.