1326
THE NEW ZEALAND GAZETTE.
[No. 36

(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 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.

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 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 fund on each 1st day of July
following the date of conversion up to and including the 1st day of July, 1944, a
contribution of £1,465, increased in respect of each contribution by a sum equal to
4½ per centum of the aggregate amount of new securities redeemable up to and
including the 1st day of July 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.

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 any 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 Public Trustee shall be the Commissioner.

(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 as if the local
authority were a local authority within the meaning of that Act.

APPLICATION OF EXISTING SINKING FUNDS.

22. The existing sinking fund of the Capital Expenditure Special Loan of £18,000
    referred to 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 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-four 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-five 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. The existing sinking fund of the Capital Expenditure Special Loan of £12,000
    referred to in the first column of the First Schedule hereto the whole of the securities
    issued in respect thereof and outstanding at the date of conversion are not existing
    securities to which this Order applies 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
    to which this Order applies bears to the amount of the existing securities to which
    this Order does not apply. The first 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 to which this
    Order applies 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, and the second
    part of such sinking fund shall be retained by the Commissioner as a sinking fund
    for those existing securities issued in respect of the loan and to which this Order
    does not apply.