Feb. 7.] THE NEW ZEALAND GAZETTE. 193

(b) Such portion of the new securities redeemable on the thirty-first day of March, one thousand nine hundred and thirty-eight as secures an amount of principal equal to the difference between the aforesaid sum of one thousand four hundred and eighty-three pounds ten shillings and the aggregate amount of principal secured by all the new securities referred to in the preceding paragraph (a) hereof.

(4) Subject to the foregoing provisions of this clause the new securities redeemable on each maturity date shall be allocated equitably between the holders of existing securities issued in respect of the first loan specified in the First Schedule hereto (hereinafter referred to as “the No. 1 loan debenture holders”) on the one hand and the holders of existing securities issued in respect of the second loan specified in such First Schedule (hereinafter referred to as “the No. 2 loan debenture holders”) on the other hand to the intent that as nearly as circumstances will permit the amount of principal secured by such of the new securities redeemable on such maturity date as are allocated to the No. 1 loan debenture holders bears to the amount of principal secured by such of the new securities redeemable on that maturity date as are allocated to the No. 2 loan debenture holders the same proportion as the aggregate amount of principal secured by all the new securities issued to the No. 1 loan debenture holders (but exclusive of any such new securities issued pursuant to the authority of section thirty-one of the Local Legislation Act, 1934), bears to the aggregate amount of principal secured by all the new securities issued to the No. 2 loan debenture holders.

PREMIUMS.

17. The holder of any existing securities to which this Order applies 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) Subject to the provisions of this clause as to payment in cash, every premium to which any person is entitled under the last preceding clause shall be satisfied by issuing to him additional new securities for the amount of such premium, or so much thereof as is not paid in cash, as the case may be.

(2) The local authority may, if it thinks fit, pay in cash the whole or any part of the aggregate amount of premiums to which any person is entitled.

(3) All payments of cash in accordance with the last preceding subclause shall be made by the local authority out of the local fund, and charged to the appropriate account.

(4) The power of the local authority to issue new securities in accordance with this Order shall be deemed to include the power to issue any additional new securities required for the purposes of this clause.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

19. The principal and interest in respect of new securities shall be payable in New Zealand.

CONSOLIDATED SINKING FUND FOR NEW SECURITIES.

20. (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 such persons as the local authority appoints shall be the Commissioners.

(2) For such purpose the local authority shall permanently appropriate and shall pay to the Commissioners of the consolidated sinking fund on each thirty-first day of March following the date of conversion up to and including the thirty-first day of March, one thousand nine hundred and sixty-three, a contribution by a sum equal to four and one-quarter per centum of the aggregate amount of new securities redeemable up to and including the thirty-first day of March preceding the 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. The proviso to subsection three of section twenty of the Electric-power Boards Amendment Act, 1927, shall not apply to any such part of the contribution as exceeds four hundred and eighty-five pounds.

(3) The provisions of sections forty to forty-four of the Local Bodies’ Loans Act, 1926, shall apply with respect to such sinking fund.

SINKING FUND FOR UNCONVERTED SECURITIES.

21. (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.