1156
THE NEW ZEALAND GAZETTE.
[No. 31

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 instalment of principal and 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 out-
    standing 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 (including new securities
    to be issued by way of premium), together with interest 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 twenty-five years, the first half-yearly instalment to fall due
    and be paid on the second day of February, one thousand nine hundred and thirty-six,
    and subsequent half-yearly instalments to fall due and be paid on every second day
    of August and second day of February thereafter, the last half-yearly instalment to fall
    due and be paid on the second day of August, one thousand nine hundred and sixty.

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.

PREMIUMS.

15. (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 Third Schedule hereto.

16. (1) 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.

(2) 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.

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

CONSOLIDATED SPECIAL RATE.

18. (1) As a security for the new securities and the unconverted securities the
    local authority shall forthwith, by resolution gazetted (in the form numbered (3) 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 the half-yearly instalments of
    principal and interest 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.

19. 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.

BROKERAGE.

20. 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.