Dec. 20.] THE NEW ZEALAND GAZETTE. 4315

(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 of
    the maturity dates specified in the Third Schedule hereto a contribution of
    seventy-three pounds, increased in respect of each contribution by a sum equal
    to two and one-eighth per centum of the aggregate amount of new securities
    redeemable up to and including the maturity date preceding that on which such
    contribution is payable, and reduced by the aggregate of the sums which during
    the six months preceding the date of payment of such contribution have, pur-
    suant 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 Commis-
    sioners 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 section thirty-
    three of the Fire Brigades 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 section 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) 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 pro-
    portion 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
    hereof 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 to
    which that clause applies, 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 Commis-
    sioner thereof in or towards making the following payments, in the following
    order of priority, namely:—