New Zealand Gazette – 1935 – No. 82

Page 3085

✨ Loan Conversion Order Details



Nov. 7.]
THE NEW ZEALAND GAZETTE.
3085

of existing securities issued in respect of the loans set out in the First Schedule
to that Order, and also the instalments of principal and interest in respect of the
unconverted securities issued in respect of such loans, the said [Name of local
authority] hereby makes and levies a special rate of [State amount in the
pound] upon the rateable value on the basis of [State whether capital, unimproved,
or annual] value of all rateable property of the district, and that such special
rate shall be an annually recurring rate during the currency of such securities,
and be payable half-yearly on the
day of
and the
day
of
[or yearly on the
day of
] in each and every year
until the last maturity date of such securities, being the
day of
,
19 , or until all such securities are fully paid off.

THIRD SCHEDULE.
COMPUTATION OF PREMIUMS.

  1. THE amount of the premium payable on the conversion of any existing securities
    shall be equal to the product obtained by multiplying the following factors, namely :—
    (a) The difference between one year's interest on the amount of principal secured
    by the existing securities at the rate payable thereon immediately before
    the date of conversion and one year's interest on the same amount at the rate
    payable on the new securities ; and
    (b) The appropriate factor specified in the Table of Factors hereinafter set out,
    according to the period between the date of conversion and the maturity
    date of the existing securities.
  2. For the purpose of computing any such period as is mentioned in paragraph (b)
    of the last preceding clause, any fraction of a half-year that is not less than three
    months shall be counted as a half-year, and any such fraction that is less than three
    months shall not be taken into account.

Table of Factors.

Period from Date of Conversion to Maturity Date of Existing Securities. Factor. Period from Date of Conversion to Maturity Date of Existing Securities. Factor.
Years. Years.
$\frac{1}{2}$ 0·488998 19$\frac{1}{2}$ 12·891438
1 0·967235 20 13·096761
1$\frac{1}{2}$ 1·434948 20$\frac{1}{2}$ 13·297566
2 1·892370 21 13·493952
2$\frac{1}{2}$ 2·339726 21$\frac{1}{2}$ 13·686017
3 2·777238 22 13·873855
3$\frac{1}{2}$ 3·205123 22$\frac{1}{2}$ 14·057560
4 3·623592 23 14·237222
4$\frac{1}{2}$ 4·032853 23$\frac{1}{2}$ 14·412931
5 4·433108 24 14·584774
5$\frac{1}{2}$ 4·824556 24$\frac{1}{2}$ 14·752835
6 5·207389 25 14·917198
6$\frac{1}{2}$ 5·581799 25$\frac{1}{2}$ 15·077944
7 5·947970 26 15·235153
7$\frac{1}{2}$ 6·306083 26$\frac{1}{2}$ 15·388903
8 6·656316 27 15·539270
8$\frac{1}{2}$ 6·998842 27$\frac{1}{2}$ 15·686327
9 7·333831 28 15·830149
9$\frac{1}{2}$ 7·661448 28$\frac{1}{2}$ 15·970806
10 7·981856 29 16·108367
10$\frac{1}{2}$ 8·295214 29$\frac{1}{2}$ 16·242902
11 8·601676 30 16·374476
11$\frac{1}{2}$ 8·901395 30$\frac{1}{2}$ 16·503155
12 9·194518 31 16·629003
12$\frac{1}{2}$ 9·481191 31$\frac{1}{2}$ 16·752081
13 9·761556 32 16·872451
13$\frac{1}{2}$ 10·035752 32$\frac{1}{2}$ 16·990172
14 10·303914 33 17·105303
14$\frac{1}{2}$ 10·566175 33$\frac{1}{2}$ 17·217900
15 10·822665 34 17·328020
15$\frac{1}{2}$ 11·073511 34$\frac{1}{2}$ 17·435716
16 11·318837 35 17·541042
16$\frac{1}{2}$ 11·558765 35$\frac{1}{2}$ 17·644051
17 11·793413 36 17·744793
17$\frac{1}{2}$ 12·022898 36$\frac{1}{2}$ 17·843319
18 12·247333 37 17·939676
18$\frac{1}{2}$ 12·466829 37$\frac{1}{2}$ 18·033913
19 12·681496

Example of Working.

Conversion as from 15th December, 1933, of 6-per-cent. securities for £100, maturing
14th January, 1947, into 4$\frac{1}{4}$-per-cent. securities.
Interest rate on existing securities (as reduced by Part I of the Act) is 4$\frac{4}{5}$ per
cent. per annum.

£
One year's interest on £100 at existing rate (4$\frac{4}{5}$ per cent.) is 4·8
One year's interest on £100 at new rate (4$\frac{1}{4}$ per cent.) is 4·25
———
Difference is £0·55

Period from date of conversion (15th December, 1933) to existing maturity date
(14th January, 1947) is 13 years 30 days, counted as 13 years.
Factor for 13 years is 9·761556.
£0·55 multiplied by 9·761556 is £5·3688558, or £5 7s. 4d., which is the premium
for £100 of the existing securities.
The premiums on other amounts of existing securities of the same class can be
computed in the same way, or alternatively, by ascertaining 5·3688558 per cent. of the
amount of the principal in each case.

J. A. MITCHELL,
Acting Clerk of the Executive Council.

(T. 49/11/18.)



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✨ LLM interpretation of page content

💰 Lower Hutt Borough Loans Conversion Order, 1935 (continued from previous page)

💰 Finance & Revenue
4 November 1935
Loan Conversion, Local Authority, Order in Council, Securities, Lower Hutt Borough Council
  • J. A. Mitchell, Acting Clerk of the Executive Council