This Act may be cited as the Greymouth Harbour Board Loans Consolidation Act, 1910.

In this Act, where not inconsistent with the context,—

It shall be lawful for the Board, as soon and at such time or times as may be found convenient, to redeem and convert the hereinbefore-mentioned loans, with the exception of the sum of one hundred thousand pounds guaranteed as aforesaid, notwithstanding that certain of such loans are not yet due and payable, and certain parts of the loan authorized by the Greymouth Harbour Board Loan Act, 1906, have not yet been raised, and for the purposes aforesaid to raise moneys, subject to the conditions herein set forth.

It shall be lawful for the Board to raise moneys in addition to those authorized to be raised under section three hereof, but so that the total amount of all moneys raised under this Act shall not exceed four hundred thousand pounds:

Provided that such additional moneys shall be raised only for the construction or completion of harbour-works in or towards the improvement of the Harbour of Greymouth, and subject to the Governor’s previous approval of the works proposed to be constructed.

The Board shall be at liberty in its discretion to raise the moneys hereby authorized to be raised in one sum or several sums, and for such purposes to create and issue consolidated debentures, which may be disposed of in both or either of the modes following, or partly in one and partly in the other of such modes, that is to say,—

Provided that nothing in this Act shall lay any obligation on any person advancing money on the security of consolidated debentures to see to the application of such money; nor shall such security be invalidated by the misapplication by the Board of such money or any of it.

The holders of any debentures issued under the provisions of the said Acts, with the exception of the debentures guaranteed as aforesaid, may, by mutual agreement between such holders and the Board or its agent, surrender the same in exchange for consolidated debentures, on such terms with reference to the difference in value as shall be agreed upon.

For adjusting the terms of such conversion as is referred to in the last preceding section the Board may pay to such holders the agreed difference in value between the debentures so surrendered and the consolidated debentures issued in exchange therefor, and such payment shall be made either in cash or by delivery of further consolidated debentures.

All sums which may be necessary for the purpose of paying in cash to holders of converted debentures the agreed difference in value between such debentures and the consolidated debentures issued in exchange therefor may be paid out of the proceeds of the disposal of consolidated debentures.

In any case in which the holder of any debentures issued under the said Acts (except debentures representing the said sum of one hundred thousand pounds guaranteed as aforesaid) shall prefer to accept an immediate cash price therefor, the Board or its agent may pay in cash the price agreed upon with him.

The Board may pay the first year’s interest on any consolidated debentures hereby authorized, and all expenses of and incidental to the authorization and issue of such debentures, out of the proceeds thereof.

No consolidated debentures shall be sold by the Board or its agents at a price that will produce to the purchaser a greater interest than five pounds per centum per annum, anything in the Harbours Act, 1908, notwithstanding.

The consolidated debentures shall be numbered consecutively commencing with No. 1, and so that no two such debentures shall at any time bear the same number.

The consolidated debentures shall rank pari passu, and have no preference or priority the one over the other by reason of priority of date of issue or otherwise. The debentures representing the sum of one hundred thousand pounds guaranteed as aforesaid shall, however, take priority over the consolidated debentures.

All of the Board’s endowments shall be security for the due payment of the principal and interest represented by the consolidated debentures; provided that this section shall in nowise limit the operation of section one hundred and ninety-one of the Harbours Act, 1908.

Prior to the issue of a loan proposed to be raised under the authority of this Act, the Governor in Council, if satisfied at any time that the revenues accruing to the Board under this Act are sufficient to meet the interest on such loan and to provide a sinking fund for repayment thereof, may declare such loan and interest to be guaranteed under this Act; and from the date of the Order in Council declaring the guarantee the interest on such loan shall be paid out of the Consolidated Fund.

Notwithstanding anything contained in the Harbours Act, 1908, in the event of a guarantee being declared as aforesaid the Governor and any persons whom he may appoint as agents for the purpose either within or beyond New Zealand may make and issue debentures under this Act and the Harbours Act, 1908, in such form as the Governor or such agents respectively think fit.

All moneys advanced from the Consolidated Fund under section fifteen of this Act shall be charged against the revenues of the Board, and shall be repaid to the said fund by the Board, together with so much added as will provide a sinking fund to liquidate the amount of the loan guaranteed under this Act.

Such sinking fund shall be of such amount and payable at such dates as shall be agreed upon between the Governor and the Board.

This Act shall be deemed a special Act within the meaning of the Harbours Act, 1908.

No further moneys shall be borrowed under the authority of any of the hereinbefore-mentioned Acts.