1962
THE NEW ZEALAND GAZETTE.
[No. 51

(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 con-
version 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.

SECURITIES HELD BY TRUSTEES.

20. 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 con-
    verted 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.

21. 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.
LOAN TO BE CONVERTED.

SECOND SCHEDULE.
FORMS.

(1) Notice.

[Name of local authority.]

CONVERSION under the Local Authorities Interest Reduction and Loans Conversion
Act, 1932-33, and the Loans Conversion Order, 19 , of debentures or
other securities issued in respect of the following loan [Particulars of loan].

Notice is hereby given to the holders of debentures or other securities issued
in respect of the above-mentioned loan that the [Name of local authority] intends
to convert all such debentures or other securities (except those in respect of
which dissent is duly signified) into new debentures having new maturity dates
and bearing interest at 4½ per cent. per annum.

The conversion will take effect from [Date of conversion].

Application for conversion must be made in writing and be accompanied by
the securities to which it relates.

Dissent from the conversion of any existing debentures or other securities
may be signified by the holder by notice in writing delivered to [Name or
designation and address of at least one person authorized to receive dissents] on
or before the day of , 19 .

If notice of dissent from the conversion of any debentures or other securities
is not received by that date the securities will be converted.

The rate of interest on any debentures or other securities in respect of which
dissent is signified as aforesaid will, by virtue of section 18 of the above-mentioned
Act, be reduced to two-thirds of the original rate as from the [Date of conversion].

Further particulars as to the new debentures and the conversion generally
may be obtained from [Name or designation and address of at least one person
authorized to give particulars].

Dated the day of , 19 .
, Chairman.

(2) New Debenture.

No. [Name of local authority], New Zealand.

New debenture, issued pursuant to Part II of the Local Authorities Interest
Reduction and Loans Conversion Act, 1932-33, and the Loans Conversion
Order, 19 . New debenture for £ , payable at , in New Zealand
on the day of , 19 , issued by the [Name of local authority],
New Zealand, under the above-mentioned Act and Order pursuant to a resolution
passed and confirmed by the said Council [or Board, or as the case may be] as
provided by section 9 (2) of the said Act.

(N.B.—The holder of this debenture has no claim in respect thereof upon
the Government or public revenues of New Zealand.)

On presentation of this debenture at , in New Zealand, on or after
the day of , 19 , the bearer thereof will be entitled to receive
£ .

Issued under the common seal of the
the day of , 19 .

[L.S.] A.B., Chairman.
C.D., Treasurer [or other officer appointed for the purpose].