The Short Title of this Act shall be “The City of Dunedin Borrowing Act 1871.”

It shall be lawful for the Corporation of the City of Dunedin (hereinafter designated as “the Corporation”) to construct gasworks or to purchase and hold the works constructed or which may be constructed by the Dunedin Gas Light Company or any other company or association for the purpose of supplying the said city with gas with all lands hereditaments appurtenances plant material furnishings and other things necessary for the manufacture and supply of gas at such price and on such terms as to the said Corporation and the other contracting party may seem fit.

It shall be lawful for the Corporation to purchase and hold the works constructed or which may be constructed by the Dunedin Waterworks Company or any other company or association for the purpose of supplying the said city with water with all lands hereditaments appurtenances plant material furnishings and other things necessary for the supply of water at such price and on such terms as to the Corporation and the other contracting party may seem fit.

It shall be lawful for the Dunedin Gas Light Company and the Dunedin Waterworks Company respectively to enter into an agreement with the Corporation for the sale of and to sell subject to any mortgages their respective works lands hereditaments appurtenances plant material furnishings and other things belonging to them respectively to the Corporation at such prices and on such terms as to them respectively shall seem meet and to grant all proper assurances and conveyances to and in favour of the said Corporation for fully vesting the premises respectively in the. Corporation.

It shall be lawful for the Corporation of the City of Dunedin from time to time to borrow and raise in New Zealand or Australia by debentures or otherwise any sum or sums not exceeding in the whole the sum of one hundred 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 Mayor and Town Clerk of the said city and such debentures may be issued with or without coupons attached.

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.

It shall be lawful for the Council of the City of Dunedin after purchase aforesaid to impose and levy special rates to defray all costs interest charges and expenses connected with the supply of gas and water or either of them and the said rates shall be made and levied and be paid in the same manner as the other rates are made and levied by the said Council and paid under the authority of any Act or Ordinance now in force Provided always that private consumers of water and gas or either of them shall be charged for the quantity of water and gas or either of them used or consumed by them respectively at such rates as may be from time to time fixed by the said Council over and above any special rate which may be payable for water and gas or either of them consumed for public purposes or connected with the supply of water and gas.

All moneys borrowed and raised under the authority of this Act shall be a charge upon the special rates and upon the works and others purchased by the Corporation in exercise of the powers herein conferred and shall be expended solely for the purchase or construction of Gasworks and for the purchase of the Waterworks or either of them for the use of the citizens of Dunedin.

The Council shall have the same powers competent to them for the recovery of the ordinary rates to enforce the recovery of the special rates imposed by virtue of this Act and sums due by consumers of water and gas or either of them and in addition thereto it shall be lawful for the Council to order the supply of gas or water to any person in arrear of the special rate to be stopped.

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.

No claim of any holder of any debenture or other security issued under the authority of this Act shall attach to or upon or be in anywise paid or satisfied out of or by the ordinary or other general revenue of New Zealand or by the General Government thereof or by the Provincial Government revenue of the Province of Otago.