Aug. 1.] THE NEW ZEALAND GAZETTE. 2093

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 Commis-
    sioners 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 redeem 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 the Electrical Extension Loan (1924)
    of £7,420 (part), £6,750, specified in the First Schedule hereto, 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 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, as far as it will extend to the nearest multiple of five pounds,
in repayment as at the date of conversion of the principal secured by
the existing securities issued in respect of such loan; and

(c) Thirdly, in transferring the balance to the Commissioner of the con-
solidated 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. For the purposes of the next two succeeding clauses the sinking fund of
    every loan in the First Schedule hereto (other than the loan referred to in the
    preceding clause twenty-three hereof) 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 Commis-
sioner 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 Commis-
sioner 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 clause twenty-four hereof, the existing
    sinking fund of every loan in the First Schedule hereto (other than the loan
    referred to in the preceding clause twenty-three hereof) the securities issued