MATURITY DATES.

16. (1) Every new security shall be redeemable at par on such one of the
    maturity dates set out in the Third Schedule hereto as is specified in that behalf
    in the security.

(2) The local authority shall so fix the respective maturity dates of the
new securities that the aggregate amount of principal secured by the new
securities maturing on each of such dates shall, if practicable, be a multiple of
one hundred pounds, and, subject thereto, shall, as nearly as may be, bear the same
proportion to the aggregate amount of principal secured by all the new securities
as the sum set opposite that date in the Third Schedule hereto bears to the total
amount specified in that Schedule.

(3) Subject to the foregoing provisions of this clause and to the express wish
of any holder who desires to have the maturity date of his securities postponed,
the maturity dates of the new securities shall as nearly as practicable be in the
same chronological order as the maturity dates of the existing securities in con-
version of which they are respectively issued.

PREMIUMS.

17. (1) The holder of any existing securities bearing interest at a rate
    which, as reduced in accordance with Part I of the Act, does not exceed the rate
    of interest payable on the new 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.

(2) The holder of any existing securities bearing interest at a rate which,
as reduced in accordance with Part I of the Act, exceeds the rate of interest
payable on the new 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 pre-
    ceding 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 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
    the Public Trustee shall be the Commissioner.

(2) For such purpose the local authority shall permanently appropriate and
shall pay to the Commissioner of the consolidated sinking fund on each thirty-
first day of March following the date of conversion up to and including the
thirty-first day of March, one thousand nine hundred and sixty-four, a contribution
of seven hundred and seventy pounds, increased in respect of each contribution by
a sum equal to four and one-quarter per centum of the aggregate amount of new
securities redeemable up to and including the thirty-first day of March 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 subsections four, five, and six of section ninety-five of
the Local Bodies' Loans Act, 1926, 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 autho-
    rity, 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.