Dec. 6.] THE NEW ZEALAND GAZETTE. 4115

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 Commissioner yearly
and every year until the maturity date of such unconverted securities, or until
the Commissioner is 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 forty
to forty-four of the Local Bodies’ Loans Act, 1926, shall, so far as applicable
and with all necessary modifications, apply with respect to such sinking fund.

APPLICATION OF EXISTING SINKING FUND.

19. (1) The existing sinking fund of every loan in the First Schedule hereto
    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 herein-
    before 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 con-
    version of the principal secured by the existing securities issued in
    respect of such loan and held by the Public Trustee.
    (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.

CONSOLIDATED SPECIAL RATE.

20. (1) As a security for the new securities and the unconverted securities
    the local authority shall forthwith, by resolution gazetted (in the form numbered
    (3) 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 the half-
    yearly instalments of principal and interest in respect of the new securities and
    of interest sinking fund, and other charges in respect of the unconverted
    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 principal, 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.

21. 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 con-
    verted 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.

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.

FIRST SCHEDULE.
LOANS TO BE CONVERTED.

• Less amount of principal repaid up to date of conversion.