Mar. 7.] THE NEW ZEALAND GAZETTE. 591

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
   conversion; 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 principal or 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
    eighteen years, the first half-yearly instalment to fall due and be paid on the
    eleventh day of November, one thousand nine hundred and thirty-five, and sub-
    sequent half-yearly instalments to fall due and be paid on every eleventh day of
    May and eleventh day of November thereafter, the last half-yearly instalment
    to fall due and be paid on the eleventh day of May, one thousand nine hundred
    and fifty-three.

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 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 Com-
    missioners 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.

APPLICATION OF EXISTING SINKING FUNDS.

18. The existing sinking fund of every loan referred to in the First Schedule
    hereto shall be applied by the Commissioners 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 securities in respect of which such sinking fund is held;