8.—6.

Term of Netv Securities. 13. (a) New securities bearing interest at 3| per cent, free of income-tax to the first half-yearly interest due date next following the maturity date of existing securities, or up to the maturity date of the existing securities if this coincides with the half-yearly interest due date of the new securities, and thereafter bearing interest at 4 per cent, subject to income-tax, will be repaid at par either on 15th March, 1943, or 15th May, 1952. (6) All new securities will be subject to the condition that the Minister of Finance shall, on giving three months' notice in the New Zealand Gazette, have the option of redemption at any time within three years prior to the maturity dates — e.g., securities maturing on the 15th March, 1943, may be redeemed on or after the 15th March, 1940. Allocation of New Securities. 14. New securities issued to any holder in exchange for any amount of existing securities shall as nearly as practicable be allotted equally to the two maturity dates specified in paragraph 13 (a) hereof, but the Minister of Finance, in the case of any holder of existing securities of less than £400, or in the case of securities held by trustees or Sinking Fund Commissioners, or in special circumstances, may direct the allocation of securities to either one of the maturity dates according to the particular circumstances. Provisions applying in General. Fractions on Conversion. 15. Where the conversion of existing securities into new securities would result in the issue of an amount of new securities that is not a multiple of £5, any fraction of £5 will be adjusted as follows : (a) By the contribution in cash by the holder of existing securities of the amount required to make up the next multiple of £5 ; or (b) by the holder of existing securities consenting to the retention of such amount of interest to accrue on new securities as is necessary to make up the next multiple of £5 ; or (c) by the holder of existing securities electing to receive payment in cash of the amount in excess of a multiple of £5. (Note. —Any payments to be made in accordance with this provision will be made on or after the Ist July, 1933.) Payment of Interest. 16. (a) Interest accrued up to and including the 31st March, 1933, on existing securities, which are converted into new securities, whether upon application or by reason of non-signification of dissent, calculated at the rate specified in existing securities, will become payable on or after the 15th May, 1933, to the person who is the holder of such securities on the 31st March, 1933, but will not be paid in any case until existing securities are surrendered. (b) Interest on new securities issued in accordance with this Prospectus will be payable on the respective half-yearly interest due dates specified in the second column of the table hereunder, except that interest from and including the Ist April, 1933, up to the first half-yearly interest due date will be payable on or before the dates specified in the third column of the table hereunder :—

17. In the case of securities in the form of stock held jointly or otherwise by two or more persons the warrants for the payment of interest may be issued in the name of the stockholder first named in the Register unless the Registrar accepts or has accepted directions from the stockholders for payment to be made otherwise. Taxation. 18. New securities issued in accordance with this Prospectus will not be subject to the special stamp duty under the National Expenditure Adjustment Act, 1932, or to special taxation imposed under the Finance Act, 1932-33, on interest derived from New Zealand Government securities. Dissent from Conversion. 19. (a) Persons who wish to dissent from the conversion of their securities must do so in writing, in a form supplied by Treasury, giving particulars of the securities concerned— i.e., amount, date of maturity, interest rate, and numbers. Notice of dissent, a form of which is obtainable at the New Zealand Government Treasury Offices at Auckland, Wellington, Christchurch, and Dunedin, at any bank, or at any postal money-order office in the Dominion, must be addressed to the Treasury, Wellington.

XXI

Column I. Column II. Column III. Date of Payment of Interest from Date of Maturity. Half-yearly Interest due Dates. 1st April, 1933, to First Halfyearly Interest due Date. I i 15th January, 1940. 15th January, 15th July. 15th July, 1933. 15th February, 1946. 15th February, 15th August. 15th August, 1933. 15th March, 1943. 15th March, 15th September. 15th September, 1933. 15th April, 1949. 15th April, 15th October. 15th October, 1933. 15th May, 1952. 15th May, 15th November. 1st July, 1933. 15th June, 1955. 15th June, 15th December. 15th July, 1933.