There shall be a Board of Commissioners under the style of the Auckland Improvement Commissioners (hereinafter called “the Commissioners”), who shall manage and dispose of the said land, and shall lay out and apply any moneys which from time to time shall come into their hands as such Commissioners, in the formation of a place for recreation, and in laying out and planting the same, and such other parts thereof as they may think fit (subject to this Act), and in forming streets and approaches, and who shall have all necessary powers and authorities for carrying this Act into execution.

The Commissioners, with respect to the said land, shall moreover have all the powers and liabilities conferred upon the Governor by “The Public Domains Act, 1860,” and by the sixth seventh, eighth, ninth, tenth, and eleventh sections of “The Public Domains Act Amendment Act, 1865,” with respect to any land mentioned or referred to therein respectively.

The number of Commissioners shall be eleven, of whom five shall be a quorum; and the Superintendent of the Province of Auckland, the Speaker of the Provincial Council, the Mayor of the City of Auckland, the Provincial Secretary for the time being, and their successors in office, and James McCosh Clark, Esquire, Francis Dart Fenton, Esquire, Theophilus Heale, Esquire, William Thorne Buckland, Esquire, Thomas Macready, Esquire, and James Mackay, junior, Esquire, and their successors, to be appointed as hereinafter provided, together with one person to be from time to time nominated and appointed as hereinafter mentioned by the Council of the Borough of Auckland, shall be the Commissioners.

The Council of the Borough of Auckland shall nominate and appoint, by resolution, one of their body to act as a Commissioner; and from time to time, as such person shall cease to be a Member of the said Council, the said Council shall in like manner nominate and appoint another Councillor to be a Commissioner in his stead.

Whenever any of the persons hereinbefore mentioned by name as Commissioners shall resign die or become incapable to act, the Provincial Council shall, subject to the approval of the Superintendent, nominate and appoint another person in his stead, and so toties quoties.

Provided always that the powers and authorities of the Commissioners shall not be affected or diminished by reason of any diminution of their numbers by death resignation or removal, but the remaining Commissioners shall have as effectual power and authority under this Act as if there were the full number of Commissioners hereinbefore provided, so long as there shall be a quorum.

The Commissioners may frame rules for the direction of their proceedings, and may appoint from time to time their Chairman, and shall enter in a book correct accounts of their proceedings.

Any contract notice deed or other instrument required to be made given or executed in carrying this Act into execution, may be made in the name of the Auckland Improvement Commissioners, and shall be effectual if signed by any two of them, authority so to sign having been previously given by the Commissioners at a regular meeting.

The first meeting of the Commissioners shall be at the office of the said Superintendent, on the first Monday of December next, at the hour of eleven in the morning; and until the Commissioners shall make other provision in this behalf by resolution, a meeting shall be held on the first Monday in every month, at the same time and place.

The Commissioners shall set out and reserve as absolutely inalienable not less than fifteen acres of the said land as ground for recreation and amusement, and may lay out and plant and enclose the same in such manner as they think fit, and may make such orders and regulations respecting the same as the Governor may make under the said Public Domains Acts in reference to any land referred to therein.

The Commissioners may lay out the remainder of the said land with streets and otherwise, as in their judgment shall best promote the improvement of the City of Auckland: Provided always that a street from Wellesley Street to Symonds Street, near its junction with Abercrombie Street, and a street from Coburg Street, near Victoria Street, to Princes Street, with as good gradients as can conveniently be obtained and not less than one hundred and fifty links wide, shall form an essential part of any plan of such disposal.

They may remove any wall house or building on the said land except the Militia Store, and may sell the materials thereof on such terms and subject to such conditions as they think fit, or they may from time to time dedicate and appropriate any such building to any purpose of public utility or recreation, and may revoke such dedication.

Before land abutting on any street to be formed under the provisions of this Act shall be offered for lease, such street shall be formed and paved both as to carriage way and foot way, and properly sewered, as to the Commissioners shall seem fit: Provided that no street shall be of less width than one hundred links.

The Commissioners may widen or alter, either in direction or level, Coburg Street and Victoria Quadrant, and may deal with the same and the ground and soil thereof as to them may seem necessary for their improvement as streets.

The management and control of all streets formed by the Commissioners, or subject to their interference by virtue of this Act, shall pass to the Council of the Borough of Auckland when the Commissioners shall give notice to them that such streets are completed.

All land subject or to be subject to this Act, excepting such part or parts thereof as may be made inalienable under the provisions hereinbefore contained, and not required for streets or approaches, may be demised and leased by the Commissioners, in such quantities, and subject to such conditions and at such times as they shall think fit, and for any term of years not exceeding ninety-nine, and for such rents as can be got for the same by public auction, without any price premium or foregift for the making of such lease. And it shall not be lawful for the Commissioners to dispose by sale of any of the said land in any other manner: Provided also that at least thirty days’ notice shall be given by advertisement in the Provincial Government Gazette, and in at least one newspaper published in the City of Auckland, of every such public auction.

All leases under this Act shall be made in the name of the Superintendent or his successors, and shall be signed by the Superintendent and sealed with the Public Seal of the Province.

All moneys coming into the hands of the Commissioners by virtue of this Act shall be applied in the payment of interest on the money borrowed and for a sinking fund as aforesaid, and in payment for clerical professional and other assistance, and for the formation of streets and approaches, and for making or altering streets, and for planting laying out and fencing the proportion of the said land reserved as aforesaid for recreation, and generally for the purpose of carrying this Act into execution; and the surplus shall be applied to such educational purposes as may be from time to time directed by Act of the Provincial Legislature of Auckland.

The accounts of the Commissioners shall be audited annually by the Provincial Auditor.

Nothing contained in this Act, or to be contained in any agreement or other instrument entered into made or executed by the Commissioners or any of them, in exercise of the powers of this Act, shall charge the person of any of the Commissioners executing such agreement or instrument, or his heirs executors or administrators, or any of their lands goods or chattels, with or for the performance of all or any of the terms or conditions in such agreement or instrument contained.

In order to raise money for the purposes of carrying this Act into execution, it shall be lawful for the Commissioners from time to time to issue debentures for any sums of money not exceeding in the aggregate the sum of fifteen thousand pounds, bearing interest after a rate to be therein fixed, not exceeding six per cent. per annum, payable half-yearly.

Every debenture shall be in the form or to the effect set forth in the Second Schedule to this Act, and shall be valid and effectual if signed by three Commissioners.

The debentures shall be numbered consecutively, commencing with number one, and shall have coupons attached thereto for every half-year’s interest, payable to bearer.

The Commissioners may from time to time make such arrangements as they may think fit for the payment of any of the debentures or coupons at any office or bank in Auckland or elsewhere.

Debentures issued under this Act may be sold in New Zealand or elsewhere as the Commissioners may think fit, and shall be sold by public tender, at a price not being less than a minimum, to be from time to time fixed by the Commissioners.

The holder of any debenture shall hot have any preference over any other holder by reason of any other priority of date or otherwise, but all debenture holders shall rank alike, and be entitled to equal rights.

Prior to the sale of any debentures, it shall be lawful for the Commissioners from time to time to borrow and raise money by the hypothecation or mortgage of such debentures, upon such terms and conditions as the Commissioners may think fit.

The debentures, together with interest and sinking fund. shall be a first charge on the lands and rents of the land and hereditaments specified in the First Schedule to this Act.

For the purpose of providing a sinking fund for the liquidation of the principal, there shall, on the tenth day of January in such year as shall be fixed by the Commissioners, not being later than the tenth day of January next after the expiration of two years after the date of the first debentures issued, be set apart out of the said rents and rates a sum equal to one per centum on all debentures issued at that time.

Such sum shall be applied in taking up so many debentures as the sum so set apart will cover, and the balance (if any) shall be deposited at interest in some bank, and added, together with the interest, to the amount set apart for the same purpose in the next succeeding; year.

The order in which the debentures shall be taken up shall be determined by lot, in a convenient manner, on a day and at a place to be from time to time fixed by the Commissioners.

On the tenth day of January in every subsequent year, a sum equal to one per centum on the total amount for which debentures have then been issued, with the addition of a sum equal to the interest on all debentures already paid off, shall be applied in taking up so many debentures, to be determined by lot as aforesaid, as such two sums with any balance from the preceding year and interest thereon added together will cover, and the balance (if any) shall be deposited at interest in some bank, and added, together with the interest thereon, to the amount to be set apart for the same purpose in the next succeeding year.

When it shall be so decided by lot that any debenture shall be paid off, interest thereon shall be paid up to the tenth day of January following, but no longer: Provided that the full amount of the debentures, with interest thereon to that date, be paid on presentation, and such debentures, with the coupons belonging thereto, and not then due, shall be given up to some person authorized by the Commissioners to receive the same.

In case any interest due in respect of any debenture shall be in arrear, or any sum due in respect of the sinking fund shall not be applied as hereinbefore provided, for six calendar months, it shall be lawful for the holder of any debenture to apply by petition to the Governor, praying that a Receiver may be appointed.

On being satisfied that such default as alleged has been made, the Governor shall, by writing under his hand and seal, appoint some fit and proper person to be Receiver, with the powers hereinafter mentioned.

Upon his appointment the Receiver shall enter into possession of the land and hereditaments specified in the said Schedule, and thenceforth all rents arising therefrom shall be paid to the Receiver, or some person appointed by him in writing, and all books papers accounts muniments of title and other documents relating to the matters aforesaid shall be handed over to the Receiver by the person in whose possession the same may be.

The money so received shall be applied—first, in payment of the expenses incurred in the execution of the powers hereby vested in the Receiver; secondly, in or towards payment rateably amongst the several debenture holders of arrears of interest and future interest from time to time accruing; thirdly, in discharge of any sums due and accruing in respect of the sinking fund; and if there be any surplus the same may be expended in improving any portion of the property held in security, and the balance, if any, shall be temporarily deposited at interest at some bank in New Zealand, so as to be available when required for any of the purposes aforesaid.

At any time when the arrears of interest and sinking fund have been fully paid and discharged, it shall be lawful for the Commissioners to apply to the Governor by petition, praying that the Receiver may be withdrawn, and possession given to the Commissioners.

It shall be lawful for but not compulsory on the Governor, on being satisfied that all arrears of interest and sinking fund have been paid and discharged, and that there is a reasonable probability that the same will not again be allowed to run into arrear, to comply with the prayer of the petition.

Provided that whenever at any future time any interest or sinking fund is again permitted to get into arrear for three calendar months, it shall be lawful for the Governor from time to time, upon a like petition and in like manner, to appoint a Receiver with the same powers as are by this Act given to the first-appointed Receiver.

During the time any Receiver is in possession, he may exercise all the powers and perform all the functions and duties given to and imposed on the Commissioners by this Act: Provided that no lease shall be granted without being first approved of by the Governor, and may employ and pay all such persons as may be necessary or proper to assist in the discharge of the duties imposed by this Act.

The Receiver shall be paid such remuneration out of the money received under this Act, by way of salary or commission or otherwise, as shall be from time to time fixed by the Governor in that behalf.

Any person who shall in any way obstruct or interfere with the Receiver, or with any person appointed by him, while in the exercise of the powers or performance of the duties given or imposed by this Act, or who, after being applied to, shall neglect or refuse to give up to the Receiver any books papers accounts muniments of title or other documents directed to be handed over to him by this Act, shall for every such offence forfeit and pay any sum not exceeding one hundred pounds to be recovered in a summary way.

No debenture holder shall have any claim whatever in respect of any debenture issued under this Act on the revenue of the Colony of New Zealand, or of the Province of Auckland, but every such debenture shall be chargeable on the lands specified in the Schedule hereto, and on the rents charged therewith by this Act.