764
THE NEW ZEALAND GAZETTE
No. 34

CERTIFICATE OF CONFIRMATION

IN pursuance of the Bylaws Act 1910, I hereby confirm the Cromwell Borough Council Building Bylaw Amendment No. 1, 1982 and declare the same came into force on the 1st day of January 1983.

Signed at Wellington this 2nd day of March 1983.

D. A. HIGHEt, Minister of Local Government.

Post Office Bonus Bonds—Weekly Prize Draw No. 2,
March 1983

PURSUANT to the Post Office Act 1959, notice is hereby given that the result of the weekly Prize Draw No. 2 for 12 March is as follows:

One prize of $25,000: 5380 029194

Seven prizes of $5,000: 471 273746
490 792955
4182 330263
5281 603644
5887 193906
6284 556018
6487 534892

R. L. G. TALBOT, Postmaster-General.

Local Authorities Loans Act 1956—Conditions Applicable to Loans Which Are Subject to the Local Authorities Loans Exemption Order 1983

PURSUANT to section 3A (3) of the Local Authorities Loans Act 1956 (as inserted by section 3 of the Local Authorities Loans Amendment Act 1982), notice is hereby given that the Local Authorities Loans Board (the “Board”) has determined as follows:

1. This general determination shall:

(a) Apply to all money which any local authority may borrow by way of special loan and for which pursuant to the Local Authorities Loans Exemption Order 1983 it is exempted from obtaining the sanction of the Board and the consent of the Minister of Finance;

(b) Notwithstanding subclause (a) hereof not apply except in respect of clause 11 hereof to special loans wholly funded by the Housing Corporation of New Zealand or the Rural Banking and Finance Corporation of New Zealand.

2. The maximum term for which the loan or any part thereof may be borrowed shall be the life of the assets created provided that the term in any event shall not exceed 30 years and provided further that:

(a) Where the method of payment is in accordance with clause 3 (a) hereof, the term shall be not less than 6 years;

(b) Where the method of repayment is in accordance with clause 3 (b) hereof, any amounts borrowed for less than 6 years shall not exceed 40 percent of the issue, and shall be borrowed for 3 years and/or 4 years and/or 5 years;

(c) Where the loan is a renewal or redemption loan the term of such loan shall be calculated to extinguish the loan liability in respect of the original borrowing within the maximum permitted term of such original borrowing.

The life of the assets shall be as set out in Schedule I to this determination. Where a loan involves a mixture of assets with different life periods a composite life period shall be calculated based on the weighted average of the individual lives of the parts of the asset created.

3. The loan or any part thereof, together with interest thereon, shall be repaid by any of the following methods of repayment:

(a) By equal aggregate annual or half-yearly instalments of principal and interest;

(b) By establishing a sinking fund before raising the said loan or any issue relating thereto and by making annual payments to such sinking fund at a percentage rate of the amount of the loan or of that issue, as the case may be (other than any part being repaid pursuant to subparagraph (a) of this clause), for the time being borrowed and not repaid. The said percentage rate shall be calculated on the maximum term of the loan and shall be not less than that set out in column B of Schedule II hereof except where the actual term of the loan is for 6 and/or 7 and/or 8 years in which case the percentage rate shall be not less than that set out in column A of Schedule II hereof.

4. No interest, instalment of principal and interest or payment to a sinking fund shall be paid outside New Zealand or out of loan money.

5. No agreement or arrangement shall be entered into with any person in respect of carrying out any part of the work for the loan purpose whereby that person is to subscribe to the loan or receive any debentures or stock in satisfaction of all or part of the price for the carrying out of such work.

6. No agreement or arrangement shall be entered into with any person to invest loan moneys or any part or parts thereof whereby such investment would yield a rate of interest less than that which would be paid by the National Provident Fund on deposits with the Local Authorities Investment Pool from time to time.

7. The rate or rates of interest, that may be paid by any local authority in respect of any such money borrowed by it, shall be such as shall not produce to the lender or lenders a rate or rates of interest exceeding the following rates:

(a) For money borrowed for any period of 1 or 2 years, 12 percent per annum;

(b) For money borrowed for any period of 3, 4, or 5 years, 12.5 percent per annum;

(c) For money borrowed for any period of 6, 7, or 8 years, 13.5 percent per annum;

(d) For money borrowed for any period of 9 years or more, 13 percent per annum.

8. (a) In respect of the loan, a placement fee, where a placement of not less than $20,000 is made by a single lender, may be paid in respect of:

(i) Placements received by local authorities whose total authorised loan raising is such that public issues are not placed on the market;

(ii) Placements received by other authorities whose total loan raising authority is in excess of its programmed loan issues and where these are received at times when public issues are not on the market;

Provided that no placement fee shall be paid in respect of an underwritten issue or any part thereof.

(b) Where a placement fee may be paid in accordance with subclause (a) hereof, the rate of such fees will be as follows:

(i) For a term of not less than 8 years but less than 10 years, a fee of up to one-half percent of the placement;

(ii) For a term of not less than 10 years but less than 15 years, a fee of up to five-eighths percent of the placement;

(iii) For a term of 15 years or more, a fee of up to three-quarters percent of the placement.

9. Where the loan is not underwritten brokerage not exceeding half percent of the amount raised may be paid.

10. (a) In respect of an underwriting arrangement with an approved underwriter an underwriting commission and fees not exceeding a total of 1¼ percent of the amount raised may be paid to the underwriters, out of which brokerage not exceeding half percent may be paid in respect of stock allotted pursuant to applications lodged by stock exchange members or trading or trustee savings bank branches within New Zealand or other classes of persons at the discretion of the organising broker and bearing their name or stamp;

(b) Underwriting fees shall be payable only to such underwriters as may be approved from time to time by the Board for this purpose;

(c) For the purpose of subclause (b) hereof the Board approves all members of a Stock Exchange in New Zealand who have been approved by their Exchange for underwriting of Local Authority Loan Issues.

11. Each local authority shall notify the Secretary to the Board prior to the raising of a special loan which is subject to this general determination of the following details in respect of such loan:

(a) Name of loan.

(b) Purpose of loan.

(c) Amount of loan.

(d) Term of loan.

Dated at Wellington this 8th day of March 1983.

R. P. STUBBS,
Acting Secretary, Local Authorities Loans Board.

SCHEDULE I

Pipes: (Sewers and Sanitary Stormwater)
Asbestos Cement:
Sewers and drains to NZ$ 1573 . . . 35
Pumping mains to NZ$ 285 . . . 35
Sea outfalls to NZ$ 285 . . . 20