JAN. 9.] THE NEW ZEALAND GAZETTE. 27

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) Subject to the provisions of this clause as to payment in cash,
    every premium to which any person is entitled under the last preceding clause
    shall be satisfied by issuing to him additional new securities for the amount of
    such premium, or so much thereof as is not paid in cash, as the case may be.

(2) The local authority shall pay in cash—

(a) The whole of the premiums to which any holder (other than the Public
Trustee) is entitled on the conversion of any existing securities to
which this Order applies, and

(b) Such portion (if any) of the premiums to which the Public Trustee, as
holder of any such existing securities, is entitled as is required to
reduce to the nearest multiple of five pounds the aggregate amount
of all such premiums to which the Public Trustee is entitled,

and may, if it thinks fit, pay in cash the whole or any part of the balance of any
such aggregate amount of premium.

(3) 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.

(4) The power of the local authority to issue new securities in accordance
with this Order shall be deemed to include the power to issue any additional new
securities required for the purposes of this clause.

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 six
hundred and ten 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 pre-
ceding 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 Public Trustee shall be the Commissioner.

(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 Commissioner yearly
and every year until the maturity date of such unconverted securities, or until the
Commissioner is 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.

APPLICATION OF EXISTING SINKING FUNDS.

22. For the purposes of the next two succeeding clauses the sinking fund
    of every loan in the First Schedule hereto some only of the existing securities
    issued in respect of which are held by the Public Trustee 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-three 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.