1446
THE NEW ZEALAND GAZETTE.
[No. 40

the loan 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
Commissioners as a sinking fund for those securities issued in respect of the loan
to which this Order does not apply.

24. For the purposes of the next two succeeding clauses the sinking fund of every
    loan 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-five 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-six 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.

25. (1) Subject to the provisions of the preceding clauses twenty-three and twenty-
    four hereof, the existing sinking fund of every loan in the First Schedule hereto, of which
    the Public Trustee is Sinking Fund Commissioner and the securities issued in respect of
    which are held by the Public Trustee, shall be applied by the Public Trustee as such
    Commissioner, 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.

26. Subject to the provisions of the preceding clauses twenty-three and twenty-four
    hereof, the existing sinking fund of every loan referred to in the First Schedule hereto
    of which the Public Trustee is Sinking Fund Commissioner (other than the loans referred
    to in the last preceding clause) shall be applied by the Public Trustee as such Com-
    missioner, 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 ; and

(b) Secondly, in payment, in accordance with the directions of the local authority,
of any cash payments (but not exceeding in the aggregate the sum of two
hundred 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); and

(c) Thirdly, in payment, in accordance with the directions of the local authority,
of the costs and charges (not exceeding in the aggregate two 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.

27. Subject to the provisions of clause twenty-three hereof, the existing sinking
    fund of every loan referred to in the First Schedule hereto (other than any such loans
    in respect of which the Public Trustee is Sinking Fund Commissioner) 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 ; and

(b) Secondly, in transferring the balance to the Public Trustee as 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.

28. (1) As a security for the new 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.