The Short Title of this Act shall be “The Nelson City Loan Act, 1872.”

The words “the Board” and the expression “Nelson City Board” shall respectively mean the Board elected for the City of Nelson under the provisions of the said recited Act.

For the purpose of defraying the cost of construction and laying down of brick culverts or sewers in Waimea Street, Nile Street, West Hardy Street, Halifax Street, Waimea Road, and Bridge Street, in the City of Nelson, it shall be lawful for the Nelson City Board to raise by the issue of debentures any sum or sums of money not exceeding in the whole the sum of five thousand pounds, which said sum or sums so raised shall be applied for the purpose aforesaid only.

Provided always that no money shall be borrowed under the authority of this Act until it shall be proved to the satisfaction of the Superintendent of the Province of Nelson that two-thirds in number of the owners of the lands and tenements to be specially rated, representing at least one-half of the value of the property liable to the special rate, shall have signified their consent thereto in writing, nor until one month’s notice by advertisement has been given by the Board of their intention to borrow the sum authorized or any portion thereof.

Such debentures shall be in the form or to the effect set forth in the Schedule hereunto annexed, and shall on the face thereof bear the signature of the Chairman and Clerk of the Board.

Every debenture shall be dated on the day on which the same shall be issued, and shall bear interest from that day not exceeding the rate of six pounds for every one hundred pounds by the year, payable half-yearly, on the first day of January and the first day of July in each year, at the office of the Board at the City of Nelson.

The aforesaid principal sum of five thousand pounds, or so much thereof as may be raised, shall be repaid by twenty equal annual instalments on the first day of July in each year.

Provided always that interest shall cease to be payable on any debentures issued under this Act on the day next after the day fixed for the payment of such debentures, unless payment of any such debenture when due shall be refused by the Board, in which case interest shall continue to attach to such debenture until it be paid.

The principal and interest of such debentures shall be paid by the aforesaid Board, and shall be a charge on the rates levied by the Board, and on all other sums of money subject to their appropriation.

Every debenture issued under this Act shall be sold for the best price that can be obtained for the same, by public competition or otherwise.

The Board shall for twenty successive years levy annually, by special rate upon all houses lands and tenements contiguous to such culvert or sewer, or near thereto, and directly benefited by the making thereof, a sum of money equal to one-twentieth of the sum or sums to be borrowed under the authority of this Act, such special rate to be recoverable from the owners or occupiers of the property so benefited, as provided by the Sale for Non-payment of Rates Act.

For the further security to the holders of these debentures, it is hereby enacted that until the whole of the aforesaid principal sum of five thousand pounds (or so much thereof as may be raised) and interest thereon be repaid, the same Board shall levy an annual rate of at least one halfpenny in the pound upon all houses lands and tenements in the City of Nelson liable to be rated under the said recited Act.

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 Nelson, but every such debenture shall be chargeable only on the rates charged therewith by this Act.