Mar. 29.] THE NEW ZEALAND GAZETTE. 1001

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) Subject to the provisions of this clause as to payment in cash, every premium
    to which any person is entitled under the last preceding clause shall be satisfied
    by issuing to him additional new securities for the amount of such premium, or so much
    thereof as is not paid in cash, as the case may be.

(2) The local authority shall pay in cash such portion (if any) of the aggregate
amount of premiums to which any person is entitled as may be required to reduce to
the nearest multiple of one hundred pounds the aggregate amount of principal represented
by the new securities (including new securities issued by way of premium) to which such
person is entitled, and may, if it thinks fit, pay in cash the whole or any part of the
balance of any such aggregate amount of premium.

(3) 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 (if any)
in that behalf 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.

19. (1) For the purpose of providing for cash premium payments the local
    authority may create, issue, and sell at a price which shall not be below par new
    securities for an aggregate amount not exceeding seven thousand one hundred and fifty
    pounds, redeemable at par on such one or more of the maturity dates set out in the Third
    Schedule hereto as may be determined by the local authority. The rate of interest
    payable on any new security issued pursuant to the authority conferred by this clause
    shall, notwithstanding anything to the contrary contained in clause fourteen of this
    Order, be such rate not exceeding four and one-quarter per centum per annum as may
    be determined by the local authority.

(2) Pending the raising of the moneys by the sale of any such new securities the
local authority may borrow the said sum of seven thousand one hundred and fifty pounds
or any part thereof by the hypothecation of such new securities at a rate of interest not
exceeding five per centum per annum.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

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

CONSOLIDATED SINKING FUND FOR NEW SECURITIES.

21. (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 funds on each first day of May
following the date of conversion up to and including the first day of May, one thousand
nine hundred and sixty-five, a contribution of two thousand two hundred 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 first day of May
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.

22. (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 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.

23. 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