The Short Title of this Act shall be “The Nelson City Loan Act, 1875.”

It shall be lawful for the said Corporation 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 ten 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 the 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, 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 hereunto 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 “The Nelson Gas Act, 1871,” or under an Act 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 Municipal Corporations Act, 1867,” or any amendment thereof, or any other Act of the General Assembly, or of the Province of Nelson, 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, subject however, and charged in the first instance, with the moneys borrowed under “The Nelson City Loan Act, 1871.”

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 rates upon which the same are charged and secured by 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 sureties 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 in or towards the construction or extension of gasworks and waterworks within the City of Nelson, or in or towards the extension and repair of those parts of the present works as are without the said city; but the same may be applied to such purposes, or either of them, in such proportion and manner as may be determined by the said Corporation; and all moneys raised under the authority of this Act shall be paid to some bank, to be from time to time appointed by the said Corporation, to a separate account, to be entitled “The Gasworks and Waterworks Account.”