(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 FUND.

22. 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 the 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 Commis-
sioner thereof in accordance with the provisions of clause twenty-three
thereof 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 Commis-
sioner 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 within
the meaning of that clause 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 Com-
    missioner 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;

(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 con-
solidated 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 Com-
    missioners 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 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;

(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

(c) Thirdly, in transferring the balance to the Commissioner of the con-
solidated 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.