On receiving from the company owner of the Kaihu Valley Railway such security as he shall think sufficient to insure repayment, the Governor by Order in Council may authorize the said company to issue debentures for any amount not exceeding $100,000, to be applied towards the continuation and completion of the said railway.
The said debentures shall be secured by first mortgage on the railway and other works to cost between $170,000 and $180,000, with such other security, if any, as the Governor in Council may consider necessary.
All such debentures shall be issued in such form, and be subject to such conditions and other provisions as the Governor in Council shall prescribe, but the currency of the debentures shall not exceed 15 years, and shall, to any amount not exceeding the aforesaid sum of $100,000, be deemed to be guaranteed under this Act, together with interest thereon, until paid, at any rate not exceeding $10 per centum per annum.
All such debentures shall, both as to principal and interest, be made payable in New Zealand.
The references to
“one hundred thousand”,
“one hundred and seventy and one hundred and eighty thousand dollars”, and
“ten dollars” were substituted, as from 10 July 1967, for references to
“fifty thousand pounds”,
“eighty-five and ninety thousand pounds”, and
“five pounds” pursuant to section 7(1) and (2) Decimal Currency Act 1964 (1964 No 27).