New Zealand Gazette – 1935 – No. 31

Page 1163

✨ Loan Conversion Order Details



APRIL 26.] THE NEW ZEALAND GAZETTE. 1163

securities issued in respect of the loans set out in the First Schedule to that Order, and
also the interest, sinking fund, and other charges (or, as the case may be, instalments
of principal and interest) in respect of the unconverted securities issued in respect
of such loans, the said [Name of local authority] hereby makes and levies a special
rate of [State amount in the pound] upon the rateable value on the basis of [State
whether capital, unimproved, or annual] value of all rateable property of the district,
and that such special rate shall be an annually recurring rate during the currency
of such securities, and be payable half-yearly on the day of
and the day of [or yearly on the day of ] in each
and every year until the last maturity date of such securities, being the day
of , 19 , or until all such securities are fully paid off.

THIRD SCHEDULE.
COMPUTATION OF PREMIUMS.

  1. THE amount of the premium payable on the conversion of any existing securities
    shall be equal to the product obtained by multiplying the following factors, namely :—
    (a) The difference between one year’s interest on the amount of principal secured
    by the existing securities at the rate payable thereon immediately before
    the date of conversion and one year’s interest on the same amount at the rate
    payable on the new securities ; and
    (b) The appropriate factor specified in the Table of Factors hereinafter set out,
    according to the period between the date of conversion and the maturity
    date of the existing securities.

  2. For the purpose of computing any such period as is mentioned in paragraph (b)
    of the last preceding clause, any fraction of a half-year that is not less than three
    months shall be counted as a half-year, and any such fraction that is less than three
    months shall not be taken into account.

Table of Factors.

Period from Date of Conversion to Maturity Date of Existing Securities. Factor. Period from Date of Conversion to Maturity Date of Existing Securities. Factor.
Years. Years.
½ 0·488998 19½ 12·891438
1 0·967235 20 13·096761
1½ 1·434948 20½ 13·297566
2 1·892370 21 13·493952
2½ 2·339726 21½ 13·686017
3 2·777238 22 13·873855
3½ 3·205123 22½ 14·057560
4 3·623592 23 14·237222
4½ 4·032853 23½ 14·412931
5 4·433108 24 14·584774
5½ 4·824556 24½ 14·752835
6 5·207389 25 14·917198
6½ 5·581799 25½ 15·077944
7 5·947970 26 15·235153
7½ 6·306083 26½ 15·388903
8 6·656316 27 15·539270
8½ 6·998842 27½ 15·686327
9 7·333831 28 15·830149
9½ 7·661448 28½ 15·970806
10 7·981856 29 16·108367
10½ 8·295214 29½ 16·242902
11 8·601676 30 16·374476
11½ 8·901395 30½ 16·503155
12 9·194518 31 16·629003
12½ 9·481191 31½ 16·752081
13 9·761556 32 16·872451
13½ 10·035752 32½ 16·990172
14 10·303914 33 17·105303
14½ 10·566175 33½ 17·217900
15 10·822665 34 17·328020
15½ 11·073511 34½ 17·435716
16 11·318837 35 17·541042
16½ 11·558765 35½ 17·644051
17 11·793413 36 17·744793
17½ 12·022898 36½ 17·843319
18 12·247333 37 17·939676
18½ 12·466829 37½ 18·033913
19 12·681496

Example of Working.

Conversion as from 15th December, 1933, of 6 per cent. securities for £100, maturing
14th January, 1947, into 4½ per cent. securities.

Interest rate on existing securities (as reduced by Part I of the Act) is 4⅜ per
cent. per annum.

One year’s interest on £100 at existing rate (4⅜ per cent.) is .. .. £4·8
One year’s interest on £100 at new rate (4½ per cent.) is .. .. 4·25

Difference is .. .. .. .. .. £0·55

Period from date of conversion (15th December, 1933) to existing maturity date
(14th January, 1947) is 13 years 30 days, counted as 13 years.

Factor for 13 years is 9·761556.

£0·55 multiplied by 9·761556 is £5·3688558, or £5 7s. 4d., which is the premium
for £100 of the existing securities.

The premiums on other amounts of existing securities of the same class can be
computed in the same way, or, alternatively, by ascertaining 5·3688558 per cent. of the
amount of the principal in each case.

(T. 49/173/3.) A. W. MULLIGAN,
Acting Clerk of the Executive Council.



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✨ LLM interpretation of page content

💰 Wairoa County Loans Conversion Order, 1935 (continued from previous page)

💰 Finance & Revenue
17 April 1935
Loan conversion, Wairoa County, Local Authorities Interest Reduction and Loans Conversion Act, 1932–33
  • A. W. Mulligan, Acting Clerk of the Executive Council