20

THE NEW ZEALAND GAZETTE.

[No. 1]

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

24. (1) Subject to the provisions of clause twenty-three hereof, where the Public
    Trustee is the Commissioner of the existing sinking fund of any loan in the First
    Schedule hereto and the securities issued in respect of such loan are held by the Public
    Trustee, such existing sinking fund shall be applied by the Public Trustee as Com-
    missioner 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 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 ;
    (b) Secondly, as far as it will extend to the nearest multiple of five pounds, in repay-
    ment 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 consolidated
    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.

25. Subject to the provisions of clause twenty-three hereof, where the Public
    Trustee is the Commissioner of the existing sinking fund of any loan referred to in the
    First Schedule hereto and the securities issued in respect of such loan are held by
    persons other than the Public Trustee, such existing sinking fund 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 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 ;
    (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) ;
    (c) Thirdly, in payment, in accordance with the directions of the local authority, of
    the costs and charges (not exceeding in the aggregate one hundred pounds)
    of and incidental to the conversion of existing securities to which this Order
    applies (whether issued in respect of the said loan or of any other loan
    referred to in the First Schedule hereto) ; and
    (d) Fourthly, in transferring the balance to the Commissioner 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.

26. (1) As a security for the new securities and the unconverted securities the
    local authority shall forthwith, by resolution gazetted (in the form numbered (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
    consolidated 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 ridings of the county as may be
    prescribed by the resolution.

(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 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.

27. 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 converted 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.

28. 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.