Section three of the principal Act is hereby amended by the insertion of the word “said” before the word “Trustees” where that word first occurs in the section, and by the insertion next after the word “Commissioners” of the words “or any other lending department of the Government (but not elsewhere).”

4 Loan may be raised by debentures.

It shall also be lawful for the said Trustees, with such consent and for such purposes as are mentioned in section three of the principal Act, to raise money from any of the lending departments of the Government mentioned or referred to in that section (but not otherwise) by debentures of not less than fifty pounds or more than one hundred pounds each, with a currency not exceeding fifteen years, terminable upon the day of , , bearing interest at the rate of not more than five pounds per centum per annum, such interest being payable on the day of and the day of in each year; and nothing contained in the said Act shall apply to any moneys so raised or any debenture issued in pursuance hereof, except section forty-two of the said Act, which shall apply to the case of each loan raised under the provisions of this Act.

5 Security for payment of debentures.

The principal and interest secured by such debentures shall be a first charge upon the lands vested in the said Trustees, and upon the rents, issues, and profits of such lands.

6 Sale of debentures.

No debenture sold under the provisions of this Act shall be sold at such a price as to produce to the purchaser an interest of more than five pounds per centum on the price paid.

7 Form of debentures.

The debentures and the coupons shall be in the respective forms set out in the Schedule hereto, and shall be numbered consecutively so that no two debentures or coupons respectively shall at any time bear the same number.

8 Amount of debentures.

The total amount of such debentures current at any time shall not exceed the sum of six thousand five hundred pounds.

9 Renewal, reissue, or exchange of debentures.

Upon the maturity of the said debentures the Trustees shall have power to renew or reissue the same, or any of them, for such period as they shall determine, or to exchange them for other debentures, at a rate of interest not exceeding five pounds per centum per annum.

10 Guarantee.

With respect to any loans at any time raised by the said Trustees under the authority in that behalf contained in the principal Act or this Act, and secured by mortgage or charge on the lands vested in the said Trustees, or the rents, issues, and profits of such lands, the following provisions shall apply:—

(1.)

It shall be lawful for the Minister of Defence, if he thinks fit so to do, by instrument in writing under his hand, to guarantee on behalf of Her Majesty the due payment of the interest on any or every such loan: Provided that he shall not be called on to make any such payment unless and until default has been made by the said Trustees in paying the same.

(2.)

All moneys from time to time payable under such guarantee shall, without further appropriation than this Act, be payable out of the Consolidated Fund, and until fully repaid by the said Trustees shall, with interest thereon at the rate of four per centum per annum (but subject to the prior rights created by such mortgage or charge), be a first charge in favour of Her Majesty on the said lands, and the rents, issues, and profits thereof.

(3.)

In such first charge there shall be implied in favour of Her Majesty the powers of sale and incidental powers in that behalf conferred on mortgagees by virtue of “The Land Transfer Act, 1885.”

(4.)

A certificate in writing under the hand of the Minister of Defence shall at all times be sufficient evidence of the amount owing under such first charge, or, as the case may be, of the satisfaction and discharge thereof; and he may from time to time, in the name and on behalf of Her Majesty, do whatever be deems necessary in order to procure payment of such amount, by the exercise of Her rights and powers as guarantor, or as holder of such first charge, or otherwise howsoever.

(5.)

Before exercising the power of sale conferred on any Government lending department by virtue of any such mortgage or charge as aforesaid, it shall be the duty of such department to give to the Minister of Defence at least one month’s previous notice in writing of intention so to do, and thereupon it shall be lawful for the Minister of Defence, without further appropriation than this Act, to pay off such mortgage or charge out of the Consolidated Fund, and take a transfer or assignment of the security.

Schedule

Form of Debenture

No. £ .

“The Dunedin Garrison Hall Trustees Empowering Act 1893 Amendment Act, 1896.”

Debenture for £ , secured on the Lands of the Dunedin Garrison Hall

Trustees, and the Bents, Issues, and Profits of the said Lands. Issued by the Dunedin Garrison Hall Trustees under the above Act.

On presentation of this debenture at the head office of the Bank of New Zealand in Wellington, or any branch thereof in New Zealand, on or after the day of , the bearer thereof will be entitled to receive the sum of £ sterling.

Interest on this debenture will be paid at the rate of pounds per centum per annum, on the day of and the day of in each year.

Interest on this debenture will cease from and after the day when payment falls due, unless default is made in payment after presentation.

Issued under the seal of the Trustees of the Dunedin Garrison Hall, this day of , 189 .

A.B., Chairman of Trustees.

C.D., E.F.,
Trustees.

N.B.—The holder of this debenture has no claim in respect thereof upon the Government of the Colony of New Zealand or the revenues of such colony.

Form of Coupon attached to Debenture

“The Dunedin Garrison Hall Trustees Empowering Act 1893 Amendment Act, 1896.”

Coupon, Debenture No. .

On presentation of this coupon at the head office of the Bank of New Zealand in Wellington, or any branch thereof in New Zealand, on or after the day of , 18 , the bearer thereof will be entitled to receive £ .

Dunedin, New Zealand, the day of 18 .

, Chairman

, Secretary.