The Short Title of this Act shall be “The Otago and Southland Public Debt Apportionment Act 1861.”

Within 120 days after the passing of this Act the Superintendent of each of the Provinces of Otago and Southland shall by writing under his hand delivered or forwarded by the Post to the Colonial Secretary appoint an Arbitrator willing to act and in default of such appointment being made by either of the said Superintendents the Governor of the Colony in lieu of the Superintendent so making default shall appoint an Arbitrator or if both such Superintendents shall make default then the Governor shall appoint two Arbitrators.

The Arbitrators shall appoint an Umpire by writing under their hands before they enter on the arbitration and if they shall fail to do so the Governor shall by writing under his hand appoint an Umpire.

It is by this Act referred to the said Arbitrators by their award to apportion between the said Provinces of Otago and Southland the Principal of the said Debts specified in the said Schedule to this Act.

If the said Arbitrators shall not make and deliver or forward their award as hereinafter provided within twelve months after the passing of this Act the matter hereinbefore referred to them shall be determined by the said Umpire alone who shall make and deliver or forward his award or umpirage in writing within sixteen months after the passing of this Act.

The Umpire may make his award or umpirage upon hearing the Arbitrators without rehearing any evidence taken by the Arbitrators Provided that in his judgment the notes of evidence taken by the Arbitrators or their statement of facts be sufficient to enable him to do so.

In the determination of the matter hereinbefore referred to them the Arbitrators and Umpire shall be guided by equity and good conscience upon consideration of all the circumstances which shall come or be laid before them.

The award of the Arbitrators or Umpire (as the case may be) shall be final and conclusive and shall be delivered or forwarded by the Post to the Governor and shall be deposited and kept as a record in the Office of the Colonial Secretary.

Evidence may be given on Oath before the Arbitrators and Umpire and they or he may administer Oaths to Witnesses.

The Arbitrators and Umpire may issue summonses to Witnesses to attend either with or without a clause requiring the production of books deeds papers and writings in their possession or under their control.

Every person who shall have been personally served with any such summons and who shall without sufficient cause refuse or neglect to appear or to produce any books deeds papers and writings required by such summons to be produced and also every person present before such Arbitrators or Umpire who shall be required to give evidence and who shall refuse to be sworn and give evidence shall forfeit and pay any sum not exceeding £50 as the Arbitrators or Umpire respectively shall determine.

The payment of any fine so imposed may be enforced upon the order of the Arbitrators or Umpire respectively in like manner as the payment of money is enforced upon an order of a Justice of the Peace.

It shall be lawful for the Arbitrators and Umpire respectively by an order in writing to allow any Witness his reasonable expenses and upon production of such order the amount therein fixed shall be paid by the Colonial Treasurer.

All necessary expenses incurred in and about the Arbitration Umpirage and Award shall be paid by the Colonial Treasurer and one-half thereof charged to the separate account of the Province of Otago and the other half to the separate account of the Province of Southland and shall be recovered accordingly.

The apportionment of the said Public Debts under this Act shall take effect as on and from the first day of April 1861 and the respective contributions of the said two Provinces to the Principal and interest of the said debts shall as and from that day be deemed to have been charged upon and be payable out of the Provincial Revenue of each Province in the proportions determined by the Award.

All interest chargeable under this Act against the Province of Southland shall be paid by the Colonial Treasurer on account of the said Province into the Provincial Treasury of the Province of Otago half-yearly and such payments being duly made the Province of Southland shall be indemnified by the Province of Otago against all further liability on account of the Interest on the said Debts for the periods in respect of which such payments respectively shall have been made.

The payments so made by the Colonial Treasurer on account of the Province of Southland shall be charged by him to the separate account of the said Province and it shall be lawful for the Colonial Treasurer out of any money in his hands payable into the Treasury of the said Province from time to time to retain and provide a sufficient and reasonable amount to enable him to meet such payments as and when the same become due or having made such payments to recover and repay the same out of any such monies as aforesaid thereafter coming to his hands.

Nothing in this Act contained shall be deemed or construed to affect or interfere with the operation of “The New Zealand Loan Act 1856.”

The apportionment of the debt secondly specified in the said Schedule to this Act between the said Provinces of Otago and Southland shall in no way affect or interfere with the security for the said debt created by the Ordinance of the Superintendent and Provincial Council of Otago intituled “The Loan Ordinance 1856” but the said security shall have the same force and effect as regards the holders of Debentures issued under the authority of the said Ordinance as if the Province of Southland had continued to form a portion of the said Province of Otago and the “New Provinces Act 1858” and this Act had not been passed.