3518
THE NEW ZEALAND GAZETTE.
[No. 82

in respect of each contribution by a sum equal to two and one-eighth per centum of the
aggregate amount of new securities redeemable up to and including the maturity date
immediately preceding that on which such contribution is payable, and reduced by the
aggregate of the sums which during the six 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 sections one hundred and fifteen to one hundred and nineteen
of the Harbours Act, 1923, shall apply with respect to such sinking fund.

SINKING FUND FOR UNCONVERTED SECURITIES.

20. (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 one hundred
    and fifteen to one hundred and nineteen of the Harbours Act, 1923, 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.

21. (1) The existing sinking fund of the loan referred to in the First Schedule hereto
    shall be applied by the Public Trustee as Commissioner thereof in accordance with the
    following provisions of this clause.
    (2) All debentures issued in respect of the loan referred to in the First Schedule
    hereto and held by such Commissioner as an investment of the sinking fund, shall be
    transferred to the local authority to be cancelled. Such cancellation shall be effected
    by the local authority in the presence of the Commissioner or a person appointed by
    him for the purpose, and under the supervision of an officer appointed by the Audit
    Office to exercise such supervision at the expense of the local authority. On the
    cancellation of such debentures the liability of the local authority and of the Commissioner
    in respect of the debentures and of the moneys secured thereby shall forthwith cease.
    (3) So much of such existing sinking fund as is not represented by the debentures
    referred to in the last preceding subclause shall, so far as it will extend, be applied 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, in transferring the balance to the Commissioner of the sinking fund
    hereinbefore required to be created for the new securities, to be held as
    part of that sinking fund.

BROKERAGE.

22. 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.

REVOCATION OF TIMARU HARBOUR BOARD LOANS CONVERSION ORDER, 1934.

23. The provisions of the Timaru Harbour Board Loans Conversion Order, 1934,
    made on the fourteenth day of April, one thousand nine hundred and thirty-four, and
    published in the Gazette of the eighteenth day of April, one thousand nine hundred and
    thirty-four, are hereby revoked.

FIRST SCHEDULE.
LOAN 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 loan [Particulars of loan].