PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

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

SINKING FUND FOR UNCONVERTED SECURITIES.

18. (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 Public Trustee shall be the Commissioner.

(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 Com-
missioner 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 FUNDS.

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
    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.

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 follow-
    ing 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.