May 16.] THE NEW ZEALAND GAZETTE.

18. (1) Every premium to which any person is entitled under the last preceding
    clause shall be satisfied by payment of the amount thereof in cash.
    (2) All payments of cash in accordance with the last preceding subclause that
    are not made out of moneys raised pursuant to the authority conferred by the next
    succeeding clause or 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.

19. (1) For the purpose of providing for cash premium payments the local
    authority may create, issue, and sell at a price which shall not be below par new
    securities for an aggregate amount not exceeding two thousand three hundred and fifty
    pounds, redeemable at par on such one or more of the maturity dates set out in the
    Third Schedule hereto as may be determined by the local authority. The rate of
    interest payable on any new security issued pursuant to the authority conferred by this
    clause shall, notwithstanding anything to the contrary contained in clause fourteen of
    this Order, be such rate not exceeding four and one-quarter per centum per annum
    as may be determined by the local authority.
    (2) Pending the raising of the moneys by the sale of any such new securities the
    local authority may borrow the said sum of two thousand three hundred and fifty
    pounds or any part thereof by the hypothecation of such new securities at a rate of
    interest not exceeding five per centum per annum.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

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

CONSOLIDATED SINKING FUND FOR NEW SECURITIES.

21. (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 first day of August
    following the date of conversion up to and including the first day of August, one
    thousand nine hundred and sixty-five, a contribution of four hundred and seventy
    pounds, increased in respect of each contribution by a sum equal to four and one-
    quarter per centum of the aggregate amount of new securities redeemable up to and
    including the first day of August 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.

22. (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 for which a sinking fund was provided, 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 persons who at the date of conversion were
    Sinking Fund Commissioners in respect of such loan shall be the first Commissioners.
    (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 redeemed 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:
    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 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 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, 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 held by the Public Trustee; 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.
    (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.