The Short Title of this Act shall be “The Nelson City Loan Act 1871.”

It shall be lawful for the Superintendent of the Province of Nelson acting with the advice of his Executive Council from time to time and at any time within the period of ten years from the passing of this Act to borrow and raise in New Zealand or elsewhere by debentures or otherwise any sum or sums not exceeding in the whole the sum of thirty thousand pounds and to prescribe the mode and conditions of repayment of such loan and the time of such repayment and the rate of interest thereon and the place or places where such principal and interest shall be made payable and the form of security to be given Provided always that such interest shall not exceed the sum of six pounds for every one hundred pounds expressed to be borrowed.

Every debenture or other security given under the authority of this Act shall be signed by the Superintendent and Provincial Secretary of the said Province and such debentures may be issued with or without coupons attached and shall be made payable at a date not later than thirty years from the date of issue of such debentures and shall be in the form or to the effect set forth in the Schedule hereto annexed.

The holder of any debenture or other security issued under the authority of this Act shall not have any preference over any other such holder by reason of the priority of the date of such debenture or security or otherwise.

All moneys borrowed under the authority of this Act shall be a charge upon all rates and sums of money raised and received or which may be raised and received under an Act passed or intended to be passed by the General Assembly of New Zealand intituled “The Nelson Gas Act 1871” or under an Act passed by the Superintendent and Provincial Council of the Province of Nelson intituled “The Nelson Waterworks Act 1863” and upon all other rates levied or to be levied within the City of Nelson for municipal purposes under “The Nelson Improvement Act 1856” or any amendment thereof or any other Act of the Province of Nelson or of the General Assembly under which for the time being rates for municipal purposes for the said city are or may be authorized to be raised except any such rates or sums of money as shall be otherwise expressly appropriated by such Acts respectively.

No claim of any holder of debentures or other securities issued under this Act shall attach to or be charged upon the ordinary or other revenue of New Zealand or of the Province of Nelson but shall be charged only upon the rates upon which the same are charged and secured by this Act. No person shall have or make any claim whatever against the said Superintendent by reason of his signing any debenture issued under this Act.

In case default shall be made in payment of the moneys borrowed under the authority of this Act or any instalment thereof or of the interest which may become payable in respect thereof for the space of six calendar months after the same shall become due it shall be lawful for the Supreme Court on the application of the holders of securities for the same to the amount of not less than one thousand pounds to appoint a Receiver of all rates and moneys upon which the same shall be secured.

All moneys raised under the authority of this Act shall be applied for the purposes hereinafter mentioned that is to say:—

In or towards the construction of gasworks within the City of Nelson.

In or towards the construction and extension of waterworks within the City of Nelson and

In or towards repayment of any moneys not exceeding in the whole four thousand pounds advanced on account of the purposes aforesaid or either of them or appropriated for such purposes or either of them out of the revenues of the Province of Nelson and with interest on such moneys and the same shall be applied to no other purposes.

But the same may be applied to such purposes or either of them in such proportion and manner as may be directed by the Superintendent of the Province of Nelson acting with the advice of his Executive Council and all moneys raised under authority of this Act shall be paid to some Bank to be from time to time appointed by the Superintendent of the said Province to a separate account to be entitled “The Gasworks and Waterworks Account” and may be drawn from such account by the Provincial Treasurer upon the warrant of the Superintendent and the certificate of the Provincial Auditor and all accounts of such receipts and expenditure shall be kept distinct from other accounts of the said Province and copies of such accounts shall be laid before the Provincial Council of Nelson at every Session of such Council.

So soon as a Municipal Corporation shall be established in the City of Nelson all gasworks and waterworks constructed out of funds raised under authority of this Act may with the assent of such Corporation and on the application of the Corporation shall be transferred to such Corporation subject to repayment of all debts and liabilities chargeable thereon and subject to such terms and conditions as may be specified in any Act or Ordinance of the said Superintendent and Provincial Council Provided that no such transfer shall in any way prejudice or affect any debentures or other securities charged upon such works or the security of any holder thereof but all such securities shall remain wholly unaffected by such transfer and all powers and remedies for securing and enforcing payment of the money borrowed may be enforced as effectually as if no such transfer had taken place.