JAN. 9.] THE NEW ZEALAND GAZETTE. 19

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 two thousand seven hundred
and seventy-five 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 con-
tribution 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
    (other than any such existing sinking fund held by the Public Trustee as Commissioner)
    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 hereinbefore
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, in transferring the balance on or before the thirty-first day of March, one
thousand nine hundred and thirty-seven, 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.

23. For the purposes of the next two succeeding clauses, where the Public Trustee
    is the Commissioner of the existing sinking fund of any loan in the First Schedule here-
    to and some only of the existing securities issued in respect of such loan are held by
    the Public Trustee such existing sinking fund shall be divided into two parts the first of
    which shall bear to the second the same proportion which the amount of the existing
    securities so held by the Public Trustee bears to the amount of the existing securities held
    by persons other than the Public Trustee. The said parts shall be applied as follows:—

(a) The first part of such sinking fund shall be applied by the Commissioner thereof
in accordance with the provisions of clause twenty-four hereof as if the
existing securities issued in respect of the loan and held by the Public Trustee
were a separate loan to which that clause applies and such first part of the
sinking fund were the sinking fund of such separate loan.