This Act may be cited as the Tauranga Borough Council Electric Loan Empowering Act, 1921.

The Tauranga Borough Council is hereby authorized and empowered to raise a special loan of twelve thousand five hundred pounds, in one sum or by instalments, for the purpose of completing the aforesaid electric works and paying the liabilities already incurred in connection therewith and the cost of raising the loan, and making repayment to the District Fund Account of moneys expended out of that fund on such works, and, when raised, the amount of the loan shall be expended accordingly.

Such loan or any instalment thereof may be for such term, not exceeding thirty-six years and a half, as the Tauranga Borough Council may determine, and if for a shorter term than thirty-six years and a half the said Council may reborrow a sufficient sum to pay off the outstanding portion of the loan or any instalment thereof, but so that the original or any renewed loan shall be extinguished within thirty-six years and a half from the date of raising the original loan hereby authorized.

The rate of interest on such loan or instalment thereof, or any renewed loan, may, with the consent of the Minister of Finance, be increased to seven per centum per annum; and a sinking fund of not less than one per centum per annum shall be created for such loan, or any instalment or any renewal thereof respectively.

The Tauranga Borough Council is hereby authorized and empowered to pledge as security for the interest and sinking fund in connection with such loan, or any instalment or renewal thereof, a special rate or rates made and levied for that purpose, and to make and levy in manner provided by section twenty of the Local Bodies’ Loans Act, 1913, with such consequential amendments as may be necessary, an annual-recurring special rate or rates on the annual value of the whole of the rateable property in the said borough as security for the interest and sinking fund in connection with such loan, or any instalment or renewal thereof; and the provisions of sections twenty-six to fifty-two of the Local Bodies’ Loans Act, 1913, and any amendments thereof, shall apply to such loan, or any instalment or renewal thereof, with such consequential amendments as may be necessary.