The Church Property Trustees are hereby empowered in their discretion to amalgamate investments as hereinafter defined of Trust Funds now and from time to time hereafter held by or vested in them for diocesan, local, or other Church purposes in the Diocese of Christchurch in one investment fund as hereinafter defined:

“Provided always that such amalgamation shall be carried out upon and subject to the provisions hereinafter set forth, that is to say:—

The investments which are hereinbefore authorized to be amalgamated shall be amalgamated in one investment fund, to be called in the books of the Trustees ‘Amalgamated Mortgages and Securities Investment Fund’.

Upon amalgamation the capital share of each trust in the investments amalgamated shall be the amount at which in the books of the Trustees as on the thirtieth day of April immediately preceding the passing of this Act the capital share of each such trust in the investments included in the amalgamation was shown; and in the case of future investments shall be the amount of capital invested for each such trust; or in the case of any trust coming into the amalgamation at a later date (as hereinafter authorized) shall be the amount of capital brought into the amalgamation at such amount as may be agreed with the Trustees with the concurrence of the Standing Committee.

All income derived from the said amalgamated fund and the investments included therein shall be brought into one income account under the name of ‘Amalgamated Mortgages and Securities Investment Fund Income Account’.

In each year there shall be credited out of the Amalgamated Mortgages and Securities Investment Fund Income Account to each trust represented in the Amalgamated Mortgages and Securities Investment Fund, in proportion to such trust’s share of capital in such fund, interest at such uniform rate as may from time to time be determined by the trustees with the concurrence of the Standing Committee:

“Provided that in no case shall the rate determined be lower than one-half per centum below the average rate of interest from the whole of the investments comprised in the Amalgamated Mortgages and Securities Investment Fund taken together.

The Trustees shall also after amalgamation of the investments establish and maintain a Reserve Fund for the purposes hereinafter mentioned.

The Trustees shall at the end of each year after amalgamation pay or transfer from the Amalgamated Mortgages and Securities Investment Fund Income Account into such Reserve Fund all moneys which shall not have been paid or credited to the several trusts under subsection five hereof.

The Reserve Fund shall be kept separate from all other trust funds, and shall be invested by the Trustees in New Zealand Government securities and in such local-body debentures or securities as are trustee investments.

The annual income derived from the investments of the moneys comprised in the Reserve Fund shall be applied at the discretion of the Trustees with the concurrence of the Standing Committee in any one or more of the ways following, that is to say:—

The capital of the Reserve Fund or any part thereof may at the discretion of the Trustees, with the concurrence of the Standing Committee, be applied in reinstating any losses of capital in the Amalgamated Mortgages and Securities Investment Fund.

The amalgamation of investments hereby authorized shall, without further consent, extend to and include the amalgamation of the investments (hereinbefore specified) of all trust funds which under the Ordinances and Acts affecting or regulating Church property in Canterbury are placed under the general control of the Synod, and of all other trust funds now or hereafter held by the Trustees with the sanction of the Synod or of the Standing Committee, and also the like investments of all diocesan, local, parochial, and other trust funds now or hereafter held by the Trustees for the benefit of the diocese or any part thereof, or of any church or church institution therein, or any diocesan or local Church purpose unless within the time and in the manner set out in subsection twelve hereof request shall be made that the investments of any specific trust fund mentioned in such request shall not be included in the Amalgamated Mortgages and Securities Investment Fund.

If the vicar and churchwardens of any parish or parochial or other district, acting on a motion duly passed at a general meeting of parishioners specially convened for that purpose, shall, by notice in writing signed by them and received by the Trustees not later than the thirtieth day of April next following the passing of this Act, request that the investments of the trust fund in which their parish or district is beneficially interested under a specific trust shall not be included in the amalgamation, then and in such case such investments shall not be so included:

“Provided always that, subject to and in accordance with any regulations which may hereafter be made by the Synod in that behalf, the investments of any trust funds so excluded may at any future time, with the approval of the Standing Committee and the Trustees, and upon the request in writing of the vicar and churchwardens of any such parish or district, acting on a motion duly passed at a general meeting of parishioners specially convened for that purpose, be permitted to be brought into the amalgamation upon such terms as may then be arranged.

The Church Property Trustees shall furnish each year to the Standing Committee for submission to Synod a comprehensive schedule of all mortgages and other investments comprised in the Amalgamated Mortgages and Securities Investment Fund, together with a brief report on each.

Nothing in this Act shall prevent any donor or testator from expressly providing in his gift or trust that the funds given or bequeathed by him shall not be included in the amalgamated fund or shall compel the Trustees to include in such fund any mortgage security or investment given or bequeathed to them by any donor or testator which they do not wish to include therein:

“Provided always that, unless expressly forbidden by any donor or testator as aforesaid, the Trustees shall include in the amalgamated fund all capital moneys received from the payment or other realization of the mortgage security or other investment which the Trustees may have declined to include in the fund.”