Mar. 7.] THE NEW ZEALAND GAZETTE. 615

(3) All payments of cash in accordance with the last preceding subclause
shall be made by the local authority out of the local fund, and charged to the
appropriate account.

(4) The power of the local authority to issue new securities in accordance
with this Order shall be deemed to include the power to issue any additional new
securities required for the purposes of this clause.

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
    such persons as the local authority appoints shall be the Commissioners.

(2) For such purpose the local authority shall permanently appropriate and
shall pay to the Commissioners of the consolidated sinking fund on each first
day of June following the date of conversion up to and including the first day
of June, one thousand nine hundred and fifty-six, a contribution of three hundred
and thirty-five pounds, reduced in respect of each contribution 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 sections forty to forty-four 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 the loan 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 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 all the existing securities bears to the aggregate
amount of principal secured by such unconverted 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 FUND.

22. The existing sinking fund of the 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; and

(b) Secondly, in transferring the balance to the Commissioners of the con-
solidated sinking fund hereinbefore required to be created for the
new securities, to be held as part of that sinking fund.

SECURITIES HELD BY TRUSTEES.

23. 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 following the date of
    conversion.

BROKERAGE.

24. 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.