360
THE NEW ZEALAND GAZETTE.
[No. 11

(3) Subject to the foregoing provisions of this clause and to the express
wish of any holder who desires to have the maturity date of his securities post-
poned, the maturity dates of the new securities shall as nearly as practicable be
in the same chronological order as the maturity dates of the existing securities
in conversion of which they are respectively issued.

PREMIUMS.

17. (1) The holder of any existing securities bearing 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 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.
    (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-
    ceeding 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
    thirtieth day of June following the date of conversion up to and including the
    thirtieth day of June, one thousand nine hundred and fifty-six, a contribution
    of one thousand eight hundred and sixty 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 thirtieth day of
    June 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 au-
    thority, 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. 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 Commissioner
    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.