Dec. 20.] THE NEW ZEALAND GAZETTE. 4325

8. If the holder of any existing securities to which this Order applies does
   not, within the time and in the manner provided by this Order, signify his
   dissent from the conversion of such securities into new securities, the existing
   securities shall be converted into new securities in the same manner as if
   application had been made under the last preceding clause.

9. Dissent from the conversion of any existing securities may be signified
   (a) at any time before the expiration of fourteen days from the date of con-
   version, or (b) in the case of any particular holder, within such further time as
   the local authority may, on account of special circumstances, in its discretion
   allow.

10. The dissent of the holder of any existing securities from the conversion
    of those securities into new securities shall be signified in writing, and shall be
    deemed to be signified when such writing is received by the local authority or by
    any person authorized by the local authority to receive it.

SURRENDER OF CONVERTED SECURITIES, AND PAYMENT OF INTEREST THEREON.

11. The holder of any existing securities converted into new securities
    (whether the conversion is on application or after failure to dissent) shall not be
    entitled to demand payment of any interest payable in respect of the existing
    securities, or to receive the new securities or any instalment of principal and
    interest payable in respect thereof, until he has surrendered the existing securities
    to the local authority.

12. Subject to the provisions of the last preceding clause, the interest on
    the outstanding principal represented by any such existing securities for the
    period ending on the date of conversion shall be payable not later than one
    month from the date of conversion.

NEW SECURITIES.

13. The aggregate amount of principal secured by the new securities to be
    issued in conversion of existing securities to which this Order applies, together
    with interest thereon computed at the rate of four and one-quarter per centum
    per annum, shall be repaid by equal half-yearly instalments over a period of
    twenty years, the first such half-yearly instalment to fall due and be paid on the
    thirtieth day of September, one thousand nine hundred and thirty-five, and sub-
    sequent half-yearly instalments on every thirty-first day of March and thirtieth
    day of September thereafter, the last half-yearly instalment to fall due and be
    paid on the thirty-first day of March, one thousand nine hundred and fifty-five.

14. (1) New securities for the amount of each half-yearly instalment
    referred to in the preceding clause shall be issued in the form of debentures in
    the form numbered (2) in the Second Schedule hereto.

(2) All new debentures shall be numbered consecutively, and as between the
holders thereof shall rank equally.

(3) Every new debenture shall state on its face the fact that the holder has
no claim in respect thereof upon the Government or public revenues of New
Zealand.

(4) Every new debenture shall be signed by the Chairman, countersigned
by the Treasurer or some other officer appointed by the local authority for the
purpose, and sealed with the common seal of the local authority.

15. As the existing securities to which this Order applies bear 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, the holders of such existing
    securities shall on the conversion thereof be entitled to receive new securities for
    the same aggregate amount of principal as is secured by the existing securities,
    without premium.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

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

SINKING FUND FOR UNCONVERTED SECURITIES.

17. (1) If dissent is signified in accordance with the provisions of this Order
    from the conversion of any existing securities issued in respect of the loan referred
    to in the First Schedule hereto, 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 issued in respect of such
loan, and shall pay such sum to the Commissioner yearly and every year until
the maturity date of such unconverted securities, or until the Commissioner is
satisfied that the accumulations of sinking funds 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.

APPLICATION OF EXISTING SINKING FUNDS.

18. (1) The existing sinking fund of the loan referred to in the First
    Schedule hereto shall be applied by the Commissioner thereof in or towards
    making the following payments, in the following order of priority, namely:—

(4) 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 issued in respect of such loan; and

(5) Secondly, as far as it will extend in repayment as at the date of
conversion of the principal secured by the existing securities.