The Short Title of this Act shall be “The Wanganui Harbour Endowment and Borrowing Act, 1877.”

In the construction of this Act the following expressions shall have the meanings hereby assigned to them, that is to say,—

The block or blocks of waste lands of the Crown in the Provincial District of Wellington, described in the First Schedule hereto, are hereby set aside as an endowment for the Board for the purposes of the said Act.

The Waste Lands Board may from time to time sell or otherwise deal with and dispose of such lands in like manner as other waste lands within the district may be sold, dealt with, or otherwise disposed of, and the Receiver of Land Revenue shall, after deducting the costs of survey of such land, pay the same into the Harbour Fund.

The Board may from time to time pledge or otherwise give security over the proceeds and profits of such land in such manner as the Board shall think fit; and, in the event of the Board so doing, such proceeds and profits shall be paid by the Receiver of Land Revenue to such trustees or other persons as may be agreed upon by the Board and the holder of the security.

For the purpose of carrying out and constructing all or any of the works contained in the thirty-sixth, thirty-seventh, and thirty-eighth sections of the said Act, the Board may borrow and raise any sum or sums of money not exceeding one hundred thousand pounds.

In order to raise money for the purpose of constructing all or any of the said works, it shall be lawful for the Board to issue debentures under the common seal of the Board to the extent of one hundred thousand pounds, and no more.

Every debenture issued under this Act shall be in the form in the Second Schedule, or to the effect thereof, and shall be numbered consecutively so that no two debentures shall at any time bear the same number, and shall be for the sum of not less than twenty or more than one thousand pounds.

Every debenture shall be repayable, both as to principal and interest, at a place within or without the colony named in the debentures, and at a time named therein, not longer than fifty years from the issue thereof; and shall state on the face thereof the funds upon which the principal and interest are secured.

The interest on every debenture shall not exceed seven per centum on the amount thereof, and shall be payable half-yearly or otherwise, and separate coupons for each sum so payable, in the form in the Third Schedule, or to the effect thereof, and numbered consecutively for each debenture, shall be attached thereto.

Debentures and coupons respectively shall be transferable by delivery; and payment to any person in possession of any such debenture or coupon of the sum named therein shall discharge the corporation of all liability in respect of such debenture or coupon.

The Board may appoint any joint stock company, or any two or more persons, within or without the colony, to be agents for raising and managing any loan authorized to be raised under this Act, and such agents shall have full power to raise such loans by bonds, debentures, or otherwise, in such manner, at such times, in such parts, and upon such terms and conditions as the Board’ shall direct; and to give and grant any necessary discharge or acquittance for the moneys raised under any such loan, or otherwise to dispose of moneys as the Board shall prescribe.

All such bonds and debentures shall be signed by the Chairman and countersigned by the Treasurer, or shall be signed by the agents, if any, for raising the loan.

Pending the raising of any moneys hereby authorized to be raised, such agents may borrow any sum or sums of money not exceeding the whole amount authorized to be borrowed, by the hypothecation or mortgage of any debentures hereby authorized to be issued; but all moneys so borrowed shall be a first charge upon and shall be repaid out of the loan when raised.

No claim of any holder of debentures issued under this Act shall attach to or be paid out of the public revenues of New Zealand or by the General Government thereof.

All such debentures and the interest payable thereon shall be a first charge upon all moneys in the Harbour Bund, excepting moneys theretofore pledged as security for any loans or appropriated to any special purpose.

In addition to any security hereby authorized, the Board may from time to time pledge or otherwise give security over the proceeds and profits of waste lands set aside as endowments as hereinbefore provided, in such manner as the Board shall think fit; and, in the event of the Board so doing, such proceeds and profits shall be paid by the Receiver of Land Revenue to such trustees or other persons as may be agreed upon between the Board and the holder of the security.

Por the purpose of providing a sinking fund for the liquidation of the principal sum raised by any loan, the Board shall in every year set aside out of the Harbour Fund a sum equal to one pound per centum on the amount of all unredeemed bonds, debentures, and other securities issued or given under this Act previous to the then current year, and shall pay the said sum to the Commissioners hereinafter named.

The Board shall appoint, and may from time to time remove and reappoint, Commissioners, within or out of the colony, to whom all moneys set apart as a sinking fund as aforesaid shall be paid; and it shall be the duty of the said Commissioners from time to time to invest all moneys so paid to them, and all accumulations of interest and profits arising therefrom, in the purchase of bonds, bills, or debentures issued by the Government of New Zealand, or by the Government of any part of the British dominions, or of bonds or debentures issued under this Act.

The Board may make provision whereby the whole of any loan shall be repayable at a stated period, or any parts thereof at stated periods.

Such Commissioners shall send to the Board, at such time as the Board directs, accounts of all moneys and all securities in their hands, and shall also annually send to the Board a balance-sheet showing all transactions in respect of such moneys or securities during the last year.

Such Commissioners shall, together with such balance-sheet, send to the Board a certificate, under the hand of one of the Commissioners of Audit or such person as they shall appoint for the purpose, of all securities held by the Commissioners.

The Commissioners to be appointed as hereinbefore provided may be interpreted to mean the Public Trustee, or may include any joint stock company within or out of the colony as one of such Commissioners.

When the principal of any loan, or any part thereof, becomes payable, the accumulated sinking fund provided for repaying the same shall be applied in the payment thereof.

When the principal of any loan, or any part thereof, becomes payable, it shall be lawful for the Board to re-borrow moneys, under the provisions of this Act, for the purpose of paying so much of the said principal moneys as is not provided for by any accumulated sinking fund held by the said Commissioners for the payment thereof.

Notwithstanding anything contained in any Act relating to building, friendly, or other benefit societies in New Zealand, or in the rules of such societies, to the contrary, it shall be lawful for any such society, or the. governing body thereof, to invest in any debentures to be issued under the provisions of this Act any accumulated funds which, under the provisions of any Act relating to building, friendly, or other benefit societies, may be invested in real or Government securities.

If any person holding a debenture issued under this Act shall tender the same for payment of the principal thereby secured at the place at which such principal is payable, at the time when such principal is payable, or at any time thereafter, and such principal shall not be paid in full; or if any person holding a coupon for’ payment of interest, or any debenture issued under this Act, shall tender the same for payment at the place at which such interest is payable, and at the time when such interest is payable, or at any time thereafter, and such interest shall not be paid in full, such person may apply for relief under this Act, by petition in a summary way, to the Judge of the Supreme Court of New Zealand to whom the judicial district comprising the harbour has been assigned.

The Judge, upon being satisfied of the truth of the matters alleged in such petition, may order that the whole or part of the lands vested in the Board be sold in such manner and at such time or times as such Judge shall direct, and that the proceeds of sale thereof shall be applied—

In payment of the expenses of such application and order, and of the proceedings thereon, and the sale in pursuance thereof;

Next, in payment of the principal moneys secured by the said debentures with interest thereon respectively at the rate aforesaid, until all such principal moneys shall have been paid:

And the residue (if any) shall be paid to the Board.

The Judge may from time to time appoint a Receiver of the rents and profits arising from the land vested from time to time in the Board, and of all moneys, dues, and rates chargeable or receivable by the Board under the authority of this Act; or he may from time to time appoint a Receiver of all or any of the rents and profits arising from the land, or of the dues and rates, without directing a sale, and may direct that such Receiver shall be paid thereout such remuneration as to the said Judge shall seem fit.

The principal moneys secured by every debenture issued under this Act shall, when the same shall become payable, be a debt of the Board to the holder for the time being of such debenture; and the interest secured by every such, debenture shall, when the same becomes payable, be a debt of the Board to the holder for the time being of the coupon for such interest; and every sum of money owing by the Board under this provision shall be recoverable by action against the Board.