Nov. 15.] THE NEW ZEALAND GAZETTE. 3571

securities shall on the conversion of such securities be entitled to receive new securities
for the same aggregate amount of principal as is secured by the existing securities,
and, in addition thereto, shall be entitled to receive a premium on such principal
computed in accordance with the Fourth Schedule hereto.

18. (1) Every premium to which any person is entitled under the last preceding
    clause shall be satisfied by payment of the amount thereof in cash.

(2) All payments of cash in accordance with the last preceding subclause that
are not made out of any sinking fund pursuant to the provisions of this Order (if any)
in that behalf shall be made by the local authority out of the local fund, and charged
to the appropriate account.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

19. The principal and interest in respect of new securities shall be payable in New
    Zealand.

CONSOLIDATED SINKING FUND FOR NEW SECURITIES.

20. (1) In order to provide funds for the repayment of the new securities the local
    authority shall forthwith make provision for the creation, pursuant to a resolution of
    the local authority, of a consolidated sinking fund, of which such persons as the local
    authority appoints shall be the Commissioners.

(2) For such purpose the local authority shall permanently appropriate and shall
pay to the Commissioners of the consolidated sinking fund on the ninth day of July, one
thousand nine hundred and thirty-five, a contribution of seven thousand five hundred
pounds, and on each ninth day of July thereafter up to and including the ninth day of
July, one thousand nine hundred and sixty-one, a contribution of fifteen thousand pounds,
increased in respect of each contribution by a sum equal to three and one-half per centum
of the aggregate amount of new securities redeemable up to and including the ninth day
of July preceding the date on which such contribution is payable, and reduced by the
aggregate of the sums which during the twelve 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.

21. (1) If dissent is signified in accordance with the provisions of this Order from
    the conversion of any existing securities issued in respect of any loan in the First
    Schedule hereto for which a sinking fund was provided, 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 appli-
cable and with all necessary modifications, apply with respect to such sinking fund.

APPLICATION OF EXISTING SINKING FUND.

22. Where the whole of the securities issued in respect of any loan specified in the
    first column of the First Schedule hereto and outstanding at the date of conversion
    are not existing securities to which the Act applies the sinking fund of such loan shall
    be divided into two parts the first of which shall bear to the second the same proportion
    which the amount of the outstanding existing securities to which the Act applies bears
    to the amount of the outstanding existing securities to which the Act does not apply.
    The said parts shall be applied as follows:—

(a) The first part of such sinking fund shall be applied by the Commissioners thereof
in accordance with the provisions of clause twenty-three hereof as if these
existing securities issued in respect of the loan to which the Act applies 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 retained by the Commissioners
thereof as a sinking fund for those securities issued in respect of the loan
to which the Act does not apply.

23. Subject to the provisions of clause twenty-two hereof, the existing sinking fund
    of every loan referred to in the First Schedule hereto 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