SEPT. 5.] THE NEW ZEALAND GAZETTE. 2427

(b) The second 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 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.

23. (1) Subject to the provisions of clause twenty-two hereof, the existing sinking
    fund of every loan in the First Schedule hereto, the securities issued in respect of
    which are held by the Public Trustee, shall be applied by the 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 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, 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.

24. Subject to the provisions of clause twenty-two 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 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, in payment, in accordance with the directions of the local authority,
of any cash premium payments required by this Order to be made to
reduce to the nearest multiple of ten pounds the aggregate amount of
principal represented by the new securities (including new securities issued by
way 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 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.

25. (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 to provide for the payment
    of interest, sinking fund, and other charges in respect of such securities. Such consolidated
    special rate shall, pursuant to the provisions of section six of the Local Authorities Interest
    Reduction and Loans Conversion Amendment Act, 1934, be made and levied on such
    differential basis for the several ridings of the county as may be prescribed by the
    resolution.

(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, but so far only as relates to any rateable property in the
Masterton County: Provided always that nothing contained in this subclause shall
apply to the “Bridge rate” referred to in the resolution of the local authority published
in the Gazette of the sixteenth day of July, one thousand nine hundred and twenty-five,
and such bridge rate may be levied and applied in all respects as if this Order had not
been made.

SECURITIES HELD BY TRUSTEES.

26. 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 converted 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.

27. 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.