MAY 16.] THE NEW ZEALAND GAZETTE. 1333

(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:

Provided that nothing in the said sections or in this Order shall authorize the
removal or suspension of the Public Trustee as Commissioner of any sinking fund.

APPLICATION OF EXISTING SINKING FUNDS.

23. (1) The existing sinking fund of each of the loans in the First Schedule hereto
    numbered 8, 9, 10 and 11 shall be applied by the respective 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 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 repay-
ment as at the date of conversion of the principal secured by the existing
securities issued in respect of such loan ; and

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. 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 (not exceeding in the aggregate the sum of sixty-
five pounds) 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);

(c) Thirdly, in payment, in accordance with the directions of the local authority, of
the costs and charges (not exceeding in the aggregate one hundred pounds) of
and incidental to the conversion of existing securities to which this Order
applies (whether issued in respect of the said loan or of any other loan referred
to in the First Schedule hereto); and

(d) Fourthly, 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 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.

BROKERAGE.

27. 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.