Dec. 14.] THE NEW ZEALAND GAZETTE. 4235

(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) Subject to the provisions of this clause as to payment in cash, every premium
to which any person is entitled under the last preceding clause shall be satisfied by issuing
to him additional new securities for the amount of such premium, or so much thereof as
is not paid in cash, as the case may be.
(2) The local authority shall pay in cash such portion (if any) of the aggregate
amount of premium to which any person is entitled as may be required to reduce to
the nearest multiple of five pounds the aggregate amount of principal represented by
the new securities (including new securities issued by way of premium) to which such
person is entitled, and may, if it thinks fit, pay in cash the whole or any part of the
balance of any such aggregate amount of premium.
(3) All payments of cash in accordance with the last preceding subclause shall be
made by the local authority out of the local fund, and charged to the appropriate
account.
(4) The power of the local authority to issue new securities in accordance with
this Order shall be deemed to include the power to issue any additional new securities
required for the purposes of this clause.

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, a contribution of two hundred and
    eighty-five 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 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 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 :
    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 FUNDS.

22. (1) The existing sinking fund of every loan in the First Schedule hereto for
    which a sinking fund was provided shall be applied by the Commissioners thereof in
    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, as far as it will extend, 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.
    (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.

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