Dec. 17.] THE NEW ZEALAND GAZETTE. 3947

to the aggregate amount of principal secured by all the new securities as the
sum set opposite that date in the Third Schedule hereto bears to the total amount
specified in that Schedule.

(3) Subject to the foregoing provisions of this clause and to the express
wish of any holder who desires to have the maturity date of his securities
postponed, the maturity dates of the new securities shall as nearly as practicable
be in the same chronological order as the maturity dates of the existing securities
in conversion of which they are respectively issued.

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) Every premium to which any person is entitled under the last
    preceding clause shall be satisfied by payment of the amount thereof in cash.

(2) All payments of cash in accordance with the last preceding subclause
that are not made out of any sinking fund pursuant to the provisions of this
Order in that behalf shall be made by the local authority out of the local fund,
and charged to the appropriate account.

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 the
    Public Trustee shall be the Commissioner.

(2) For such purpose the local authority shall permanently appropriate and
shall pay to the Commissioner of the consolidated sinking fund on each of the
maturity dates specified in the Third Schedule hereto, a contribution of five
hundred and thirty-six pounds, increased in respect of each 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 maturity date immediately preceding
that 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.

(3) The provisions of subsections four, five, and six of section ninety-five
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:

Provided that nothing in the said sections or in this Order shall authorize
the removal or suspension of the Public Trustee as Commissioner of any sinking
fund.

APPLICATION OF EXISTING SINKING FUNDS.

22. The existing sinking fund of every loan referred to in the First Schedule
    hereto shall be applied by the Commissioners 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 Commissioners 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;

(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.