3634
THE NEW ZEALAND GAZETTE.
[No. 91

(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.

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

SINKING FUND FOR UNCONVERTED SECURITIES.

18. (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.

19. (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 herein-
    before 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 con-
    version 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.

20. (1) As a security for the new securities and the unconverted securities
    the local authority shall forthwith, by resolution gazetted (in the form num-
    bered (3) in the Second Schedule hereto), make and levy a special rate over
    the whole of the Peninsula Riding 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.
    (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.

SECURITIES HELD BY TRUSTEES.

21. 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 con-
    verted 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.

22. 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.