MAY 16.] THE NEW ZEALAND GAZETTE. 1327

24. (1) Subject to the provisions of the preceding clauses twenty-two and twenty-
    three 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 ; and

(b) Secondly, as far as it will extend, 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.

(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.

25. Subject to the provisions of the preceding clauses twenty-two and twenty-three
    hereof, the existing sinking fund of every loan in the First Schedule hereto, the
    securities issued in respect of which are not held by the Public Trustee, shall be applied
    by the Public Trustee as 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, 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.

ADDITIONAL SECURITY.

26. (1) Where the local authority has heretofore executed in favour of the Public
    Trustee as holder of any existing securities issued in respect of any loan referred to in
    the First Schedule hereto any deed of mortgage or charge over any of its property or
    revenues, the local authority shall on the conversion of such loan, if so required by such
    holder, execute in his favour by way of additional security for the new securities and
    unconverted securities in respect of such loan a new deed of mortgage or charge
    corresponding as nearly as circumstances will permit to the terms of the existing deed.

(2) On the execution of any new deed pursuant to the last preceding subclause
the existing deed shall be surrendered to the local authority and be deemed to be
cancelled.

SECURITIES HELD BY TRUSTEES.

27. 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.

28. 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.

FIRST SCHEDULE.
LOANS TO BE CONVERTED.