1456
THE NEW ZEALAND GAZETTE.
[No. 40

outstanding existing securities to which the Act applies bears to the amount of the
outstanding existing securities to which the Act does not apply. The first part of
such sinking fund shall be applied by the Commissioners thereof in accordance
with the provisions of clause twenty-five hereof as if those existing securities
issued in respect of the loan to which the Act 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 existing securities
issued in respect of the loan to which the Act does not apply.

23. For the purposes of the next two succeeding clauses where the sinking
    fund of any loan in the First Schedule hereto is held by the Public Trustee and
    some only of the existing securities issued in respect of such loan are held by the
    Public Trustee such sinking fund 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.

24. (1) Subject to the provisions of clause twenty-three hereof, where the
    existing sinking fund of any loan in the First Schedule hereto is held by the
    Public Trustee as Commissioner thereof and the securities issued in respect of
    such loan are held by the Public Trustee, such sinking fund shall be applied by
    the 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 herein-before 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 clause twenty-three hereof, 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 herein-before 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 Commissioners 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.

26. (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.

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