MAR. 29.] THE NEW ZEALAND GAZETTE. 995

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.

(b) The second part of such sinking fund shall be applied by the Commissioner
thereof in accordance with the provisions of clause twenty-four hereof as if the existing securities issued in respect of the loan
and held by persons other than the Public Trustee were a separate
loan to which that clause applies and such second part of the sinking
fund were the sinking fund of such separate loan.

23. (1) Subject to the provisions of clause twenty-two hereof, the existing
    sinking fund of every loan in the First Schedule hereto the securities issued in
    respect of which are held by the Public Trustee, shall be applied by the Commissioner
    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 Commissioner of the sinking fund hereinbefore 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;

(b) Secondly, as far as it will extend to the nearest multiple of five pounds,
in repayment as at the date of conversion of the principal secured by
the existing securities issued in respect of such loan and held by the
Public Trustee; and

(c) Thirdly, in transferring the balance to the Commissioner of the consolidated sinking fund hereinbefore required to be created for the new
securities, to be held as part of that sinking fund.

(2) Interest up to the date of conversion on any existing securities so repaid
in accordance with paragraph (b) of the last preceding subclause shall be paid
by the local authority out of the local fund.

24. Subject to the provisions of clause twenty-two hereof, the existing sinking
    fund of every loan referred to in the First Schedule hereto (other than the loans
    referred to in the last preceding clause) 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 hereinbefore 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;

(b) Secondly, in payment, in accordance with the directions of the local
authority, of any cash payments required by this Order to be made in
respect of premiums to which any holder is entitled on the conversion
of any existing securities to which this Order applies (whether issued
in respect of such loan or of any other loan referred to in the First
Schedule hereto); and

(c) Thirdly, in transferring the balance to the Commissioner of the consolidated sinking fund hereinbefore required to be created for the
new securities, to be held as part of that sinking fund.

CONSOLIDATED SPECIAL RATE.

25. (1) As a security for the new securities and the unconverted securities
    the local authority shall forthwith, by resolution gazetted (in the form numbered (4) in the Second Schedule hereto), make and levy a special rate over the
    whole of the district of the local authority to provide for the payment of interest,
    sinking fund, and other charges in respect of such securities.

(2) Subject to the provisions of this Order, the provisions of the Local
Bodies’ Loans Act, 1926, and of any other Act shall, so far as applicable and
with all necessary modifications, apply with respect to such special rate, and with
respect to the principal, interest, and other charges in respect of such securities,
as if such special rate were made and levied in respect of a special loan raised
under Part I of the said Local Bodies’ Loans Act, 1926.

(3) Upon the making of such special rate every special rate theretofore
made in respect of any existing securities to which this Order applies shall cease
to be a security for such existing securities.

SECURITIES HELD BY TRUSTEES.

26. 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 converted 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.

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