CONSENT TO CONVERSION.

7. The consent of the holder of the existing securities to the conversion thereof
   in accordance with this Order shall, if given, be signified in writing not later than the
   date of conversion, and when given shall be irrevocable.

NEW SECURITIES.

8. The aggregate amount of principal secured by the new securities to be issued
   in conversion of existing securities to which this Order applies, together with interest
   thereon computed at the rate of four and one-quarter per centum per annum, shall be
   repaid by equal half-yearly instalments over a period of twenty years, the first half-
   yearly instalment to fall due and be paid on the fifteenth day of June, one thousand
   nine hundred and thirty-nine, and subsequent half-yearly instalments to fall due and
   be paid on every fifteenth day of December and fifteenth day of June thereafter, the
   last half-yearly instalment to fall due and be paid on the fifteenth day of December, one
   thousand nine hundred and fifty-eight.

9. (1) New securities for the amount of each half-yearly instalment referred
   to in the preceding clause shall be issued in the form of debentures in the form
   numbered (2) in the Second Schedule hereto.

(2) All new debentures shall be numbered consecutively, and as between the holders
thereof shall rank equally.

(3) Every new debenture shall state on its face that the holder has no claim
in respect thereof upon the Government or public revenues of New Zealand.

(4) Every new debenture shall be signed by the Mayor, countersigned by the
Treasurer or some other officer appointed by the local authority for the purpose, and
sealed with the common seal of the local authority.

10. The holder of the existing securities to which this Order applies shall on the
    conversion thereof be entitled to receive new securities for the same aggregate amount
    of principal as is secured by the existing securities, without premium.

11. The principal and interest in respect of new securities shall be payable at such
    place or places in New Zealand as may be directed by the holder.

SURRENDER OF CONVERTED SECURITIES AND PAYMENT OF INTEREST THEREON.

12. The holder of the existing securities converted into new securities shall surrender
    the existing securities in Wellington in exchange for the new securities, and shall be
    entitled to receive on the date of conversion interest on the existing securities for the
    period ending on the date of conversion.

CONSOLIDATED SPECIAL RATE.

13. (1) As a security for the new securities the local authority shall forthwith,
    by resolution gazetted (in the form numbered (3) in the Second Schedule hereto), make
    and levy a special rate over the whole of the district of the local authority to provide
    for the payment of the half-yearly instalments of principal and interest in respect of the
    new securities.

(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 principal,
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.

PAYMENT OF COSTS OF CONVERSION.

14 All costs, charges, and expenses incidental to the conversion shall be borne by
the local authority.

FIRST SCHEDULE.

LOANS TO BE CONVERTED.

• Less amount of principal repaid to date of conversion.

SECOND SCHEDULE.

FORMS.

(1) Notice.

CROMWELL BOROUGH COUNCIL.

CONVERSION under the Local Authorities Interest Reduction and Loans Conversion Act,
1932–33, section 20 of the Finance Act (No. 2), 1935, and the Cromwell Borough Loans
Conversion Order, 1938, of debentures or other securities issued in respect of the
following loans [Particulars of loans].

Notice is hereby given to the holders of debentures or other securities issued in
respect of the above-mentioned loans that with the consent of the holder thereof the
Cromwell Borough Council intends to convert all such debentures or other securities
into new debentures having new maturity dates and bearing interest at 4¼ per cent. per
annum.

The conversion will take effect from the 15th day of December, 1938.