Aug. 8.] THE NEW ZEALAND GAZETTE. 2169

(2) The holder of any existing securities bearing interest at a rate which, as reduced
in accordance with Part I of the Act, exceeds the rate of interest payable on the new
securities shall on the conversion of such securities be entitled to receive new securities
for the same aggregate amount of principal as is secured by the existing securities,
and, in addition thereto, shall be entitled to receive a premium on such principal
computed in accordance with the Fourth Schedule hereto.
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 any sinking fund pursuant to the provisions of this Order in that
behalf or out of moneys raised pursuant to the authority conferred by the next succeeding
clause 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 four hundred 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, not-
withstanding 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 four hundred 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 the first maturity date
    specified in the Third Schedule hereto a contribution of two hundred and sixty-nine
    pounds, and on each maturity date thereafter specified in the said Third Schedule a
    contribution of five hundred and sixty-nine pounds, increased in respect of each
    contribution by a sum equal to two and one-eighth per centum of the aggregate amount
    of new securities redeemable up to and including the maturity date immediately preceding
    that on which such contribution is payable, and reduced by the aggregate of the sums
    which during the six 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 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. 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-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.