2438
THE NEW ZEALAND GAZETTE.
[No. 64

(b) In the case of any particular holder, within such further time as the local
authority may, on account of special circumstances, in its discretion allow.
10. The dissent of the holder of any existing securities from the conversion of
those securities into new securities shall be signified in writing, and shall be deemed to
be signified when such writing is received by the local authority or by any person
authorized by the local authority to receive it.

SURRENDER OF CONVERTED SECURITIES, AND PAYMENT OF INTEREST THEREON.
11. The holder of any existing securities converted into new securities (whether
the conversion is on application or after failure to dissent) shall not be entitled to
demand payment of any interest payable in respect of the existing securities, or to
receive the new securities or any instalment of principal and interest payable in respect
thereof, until he has surrendered the existing securities to the local authority.
12. Subject to the provisions of the last preceding clause, the interest on the out-
standing principal represented by any such existing securities for the period ending
on the date of conversion shall be payable not later than one month from the date of
conversion.

NEW SECURITIES.
13. The aggregate amount of principal secured by the new securities to be issued
in conversion of existing securities to which this Order applies, together with interest
thereon computed at the rate of four and one-quarter per centum per annum, shall be
repaid by equal half-yearly instalments over a period of sixteen years, the first half-
yearly instalment to fall due and be paid on the first day of May, one thousand nine
hundred and thirty-six, and subsequent half-yearly instalments to fall due and be paid
on every first day of November and first day of May thereafter, the last half-yearly
instalment to fall due and be paid on the first day of November, one thousand nine
hundred and fifty-one.
14. (1) New securities for the amount of each half-yearly instalment referred
to in the preceding clause shall be issued in the form of debentures in the form
numbered (2) in the Second Schedule hereto.
(2) All new debentures shall be numbered consecutively, and as between the holders
thereof shall rank equally.
(3) Every new debenture shall state on its face the fact that the holder has no
claim in respect thereof upon the Government or public revenues of New Zealand.
(4) Every new debenture shall be signed by the Chairman, countersigned by the
Treasurer or some other officer appointed by the local authority for the purpose, and
sealed with the common seal of the local authority.
15. As the existing securities to which this Order applies bear interest at a rate
which, as reduced in accordance with Part I of the Act, does not exceed the rate of
interest payable on the new securities, the holders of such existing securities shall on the
conversion thereof be entitled to receive new securities for the same aggregate amount of
principal as is secured by the existing securities, without premium.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.
16. The principal and interest in respect of new securities shall be payable in New
Zealand.

SINKING FUND FOR UNCONVERTED SECURITIES.
17. (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 Public Trustee shall be the Commissioner.
(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 Commissioner yearly and every year until
the maturity date of such unconverted securities, or until the Commissioner is 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.

APPLICATION OF EXISTING SINKING FUNDS.
18. (1) The existing sinking fund of every loan 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 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.

CONSOLIDATED SPECIAL RATE.
19. (1) As a security for the new securities and the unconverted securities the
local authority shall forthwith, by resolution gazetted (in the form numbered (3) 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 the half-yearly instalments of
principal and interest in respect of the new securities and of interest, sinking fund, and
other charges in respect of the unconverted 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 principal,
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.