Nov. 8.]

THE NEW ZEALAND GAZETTE.
3523

APPLICATION OF EXISTING SINKING FUND.

22. (1) For the purposes of the next two succeeding clauses the sinking
    fund of every loan in the First Schedule hereto some only of the existing
    securities issued in respect of which are held by the Public Trustee shall be
    divided into two parts the first of which shall bear to the second the same proportion which the amount of 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
    to which that clause applies 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 repayment 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 in 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 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 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.

D