3958
THE NEW ZEALAND GAZETTE.
[No. 95

(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.
(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.
23. The existing sinking fund of every loan referred to in the First Schedule
hereto (other than any sinking fund to which the provisions of the last preceding
clause apply) 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 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 Public Trustee as Com-
missioner of the consolidated sinking fund hereinbefore required to be
created for the new securities, to be held as part of that sinking fund.

CONSOLIDATED SPECIAL RATE.

24. (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 (4) in the Second Schedule hereto), make and levy a consolidated special
    rate to provide for the payment of interest, sinking fund, and other charges in
    respect of such securities. Such special rate shall, pursuant to the provisions
    of section six of the Local Authorities Interest Reduction and Loans Conversion
    Amendment Act, 1934, be made and levied on such differential basis for the several
    legal subdivisions of the district of the local authority as may be prescribed by
    the resolution.
    (2) Subject to the provisions of this Order, the provisions of the Local
    Bodies’ Loans Act, 1926, the Taupiri Drainage and River District Act, 1929, 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 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.

25. 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.

26. 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.
LOANS TO BE CONVERTED.