Dec. 6.] THE NEW ZEALAND GAZETTE. 3695

(b) Secondly, as far as it will extend to the nearest multiple of five pounds,
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; and
(c) Thirdly, in transferring the balance to the Commissioner of the con-
solidated sinking fund hereinbefore required to be created for the new
securities, to be held as part of that sinking fund.

(3) Interest up to the date of conversion on any existing securities so
repaid in accordance with paragraph (b) of this subclause shall be paid by the
local authority out of the local fund.

(4) The second part of the existing sinking fund 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 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 second part of the existing sinking fund at the date of
conversion as the aggregate amount of principal secured by such of the
unconverted securities as are held by persons other than the Public
Trustee bears to the aggregate amount of principal secured by all the
existing securities held by persons other than the Public Trustee;
(b) Secondly, in payment, in accordance with the directions of the local
authority, of any cash 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 con-
solidated sinking fund hereinbefore required to be created for the
new securities, to be held as part of that sinking fund.

SECURITIES HELD BY TRUSTEES.

23. 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.

24. 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.

FIRST SCHEDULE.

LOAN TO BE CONVERTED.

SECOND SCHEDULE.

FORMS.

(1) Notice.

[Name of local authority.]

CONVERSION under the Local Authorities Interest Reduction and Loans Conversion
Act, 1932–33, and the Loans Conversion Order, 19 , of debentures or
other securities issued in respect of the following loan [Particulars of loan].

Notice is hereby given to the holders of debentures or other securities issued
in respect of the above-mentioned loan that the [Name of local authority] intends
to convert all such debentures or other securities (except those in respect of which
dissent is duly signified) into new debentures having new maturity dates and
bearing interest at 4½ per cent. per annum.

The conversion will take effect from [Date of conversion].

Application for conversion must be made in writing and be accompanied by
the securities to which it relates.

Dissent from the conversion of any existing debentures or other securities
may be signified by the holder by notice in writing delivered to [Name or
designation and address of at least one person authorized to receive dissents] on
or before the day of , 19 .

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