Whereas by Proclamation published in the Gazette on 19 August 1937 all those pieces or parcels of land situate in the Borough of Napier containing 69 acres and 30 perches, more or less, comprising portions of Lots 2 and 3, Deposited Plan 6187, being portions of Te Whare-o-Maraenui Block and portion of Section 13R (closed road), situate in Block IV, Heretaunga Survey District (Borough of Napier), (Hawke's Bay Registry), (SO 1166, green), in the Hawke's Bay Land District: as the same is more particularly delineated on the plan marked PWD 96180, deposited in the office of the Minister of Public Works, at Wellington, and thereon edged red, were, pursuant to the powers conferred by the Public Works Act 1928 and section 32 of the Statutes Amendment Act 1936, taken by the Crown for housing purposes on and after 23 August 1937:
And whereas at that date the said lands formed part of the lands mentioned in section 2 of the Napier Harbour Board Act 1874 and were by that Act vested in the Napier Harbour Board (hereinafter called the Board) and reserved and set aside in trust for the use, benefit, and endowment of the Board:
And whereas by section 92 of the Public Works Act 1928 (hereinafter referred to as the said Act), it is provided that any compensation moneys arising from a sale or other disposition of lands held upon such trusts as aforesaid shall be paid into the Public Trust Office and applied in manner therein provided:
And whereas the amount of the compensation payable by the Crown for the lands so taken as aforesaid has not yet been ascertained:
And whereas the Board is desirous of expending out of such compensation moneys a sum not exceeding 11,000 pounds in or towards the erection upon other lands of the Board of administrative and office buildings for the use of the Board:
Be it therefore enacted as follows:
(1) Notwithstanding anything contained in section 92 of the said Act, out of the compensation moneys payable in respect of lands taken by the Crown as aforesaid there shall be paid to the Board a sum not exceeding 11,000 pounds for the purposes hereinafter provided.
(3) The Board shall establish a sinking fund to be administered by the Public Trustee by paying to the Public Trustee such annual sum as, together with compounded interest thereon calculated at 4 pounds per centum per annum, will amount, at the expiration of a period of 40 years commencing from the date hereinafter referred to, to the sum actually expended for the purposes aforesaid, and the sinking fund so created shall upon the expiration of the said period be held and applied by the Public Trustee in accordance with the provisions of the said Act.
(4) The date referred to in the last preceding subsection shall be the date on which the Board receives payment of the said sum of 11,000 pounds or the first date on which the Board receives payment of any part of that sum.