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Nevada, the m arket value of which shall at all times equal the am ount of funds so deposited as collateral security, and such securities shall be placed by the T reasurer in escrow in some bank other than the depositary of the funds of the D istrict. In the event of the failure of the depositary to repay such funds to the D istrict on demand, or to pay the same to its order, the securities so placed in escrow shall be redelivered to the Treasurer and may be sold by him w ith or w ithout notice and the proceeds thereof used to reimburse the D istrict. In the discretion of the proper officer or officers of the D istrict the depositary may, in lieu of said deposit of such securities, be perm itted to deliver to the T reasurer of the D istrict an indemnifying bond or bonds of a corporate surety, qualified as sole surety on bonds or undertakings required by the laws of the State of Nevada and approved by the insurance commission of the State of Nevada as a company possessing the qualifications required for the purpose of transacting a surety business w ithin this state, the penal am ount of which shall at no tim e be less than the am ount of money deposited by the D istrict w ith such depositary. All moneys deposited with each depositary shall be allocated to accounts designated to indicate the particular fund or account to which any such moneys belong. Section 25. Investment of Funds. Moneys in the Construction, Revenue, Bond Service, and Redemption Funds may be invested in direct obligations of the U nited States, provided the m aturity shall not be later than eighteen (18) m onths from the date of investment. Moneys in the Reserve Fund may be invested in any authorized direct obligations of the U nited States. Obligations so purchased as an investm ent of moneys in any such funds shall be deemed at all times to be a p art of such funds and the interest accruing thereunder and any profit realized from the investm ent shall be credited to such funds and any loss resulting from such investm ent shall be charged to such funds. The Board of Directors shall sell at the best price obtainable or present for redemption any obligations so purchased whenever it shall be necessary to do so in order to provide moneys to meet any paym ent or transfer from such account or from such funds. N either the D istrict nor the Board of Directors nor any officer of the D istrict shall be liable or responsible for any loss resulting from any such investment. Section 26. Lost, Destroyed or Mutilated Bonds. In the event any bond and unm atured interest coupons pertaining thereto are lost, destroyed, or m utilated, upon request of the bearer or registered owner thereof, a new bond and/or coupons similar to the original will be issued to replace the same, in such manner and upon such reasonable term s and conditions as the Board of Directors of said D istrict may from tim e to tim e determine and prescribe by resolution. Section 27. Cancellation of Bonds. All bonds and coupons surrendered to any fiscal agent of Las Vegas Valley W ater D istrict in The City of Los Angeles, California, in the City of Chicago, Illinois, or in the City of New York, New York, for paym ent upon m aturity or for redemption shall upon paym ent therefor be canceled immediately and forthw ith transm itted to the Treasurer of the D istrict. All of the bonds and interest coupons surrendered to the Treasurer for payment, upon purchase prior to m aturity or for redemption shall upon paym ent therefor be canceled immediately. All of the canceled bonds and interest coupons shall remain in the custody of the Treasurer until destroyed pursuant to due authorization. Section 28. Bond Form. T h at said bonds and coupons for the interest thereon shall be issued in substantially the following form : U N IT E D STA TES O F A M ER IC A ST A T E O F N E V A D A LAS VEGAS V A L L E Y W A T E R D IS T R IC T W A T E R W O R K S BOND, 1954 No....„.-..~—...... ........ $1,000 LAS VEGAS V A L L E Y W A T E R D IST R IC T , a public corporation situated in Clark County, State of Nevada, for value received, hereby acknowledges its indebtedness and promises to pay to the bearer or, if this bond be registered, to the registered owner hereof, on March 1, 19...., upon presentation and surrender of this bond, the sum of O N E TH O U SA N D D O LLA RS, w ith interest th ere in at the rate o f ....... % per annum, payable annually for the first year and semiannually thereafter, on the first days of March and September of each and every year from the date hereof until this bond is paid, upon presentation and surrender of 11 the respective interest coupons hereto attached; provided, however, th at if at the m aturity date of this bond or, if the same is redeemable and shall be duly called for redemption, then at the date fixed for redemption, funds are available for the payment or redemption thereof, as provided in the resolution hereinafter mentioned, this bond shall then cease to bear interest. Principal and interest and any premium upon the redemption hereof are payable in lawful money of the United States of America at the office of the T reasurer of the D istrict in the City of Las Vegas, Nevada, or at any fiscal agency of the Las Vegas Valley W ater D istrict in The City of Los Angeles, California, in the City of Chicago, Illinois, or in the City of New York, New York, at the option of the holder hereof. This is one of a duly authorized issue of bonds of the D istrict designated “Las Vegas Valley W ater D istrict W aterw orks Bonds, 1954”, hereinafter called “the bonds”, all of which have been issued pursuant to Chapter 167, Statutes of Nevada, 1947, as amended and supple­mented, and in pursuance of the Laws and Constitution of the State of Nevada and is authorized by the affirmative vote and assent of more than a m ajority of the qualified electors of said D istrict voting at an election duly and legally called, held and conducted on the 30th day of September, 1953. Said bonds are general obligations of the D istrict and the full faith, credit and resources of said D istrict (subject to existing Constitutional restrictions) are hereby pledged to their payment. Pursuant to said Chapter 167, principal and interest on said bonds shall, so far as possible, be paid from the revenues from the works and properties of the District. The term s, conditions and covenants of the bonds are provided for by a resolution authorizing the bonds, adopted by the Board of Directors of the Las Vegas Valley W ater D istrict on January 8, 1954. By the term s of Chapter 167, Statutes of Nevada, 1947, as amended and supplemented, and by covenant expressed in said resolution, subject to the limitation th at the rates and charges shall be reasonable, the officers of the D istrict are obligated to fix rates and collect charges for service from the works or properties of the D istrict such as to provide revenues sufficient to pay the necessary expenses of maintenance and operation of such works and properties, the general expenses of the D istrict and the principal and interest on the bonds, as the same become due. The covenants expressed in said resolution impose upon the officers of the D istrict certain other obligations to the holders of the bonds, restricting transfers out of the Revenue Fund, and imposing conditions with respect to any sale or lease of said works and properties and the creation of additional debt. In the m anner provided in said resolution, certain of the covenants and obligations contained therein may be waived with the consent of the holders of sixty-six and two-thirds per cent (66-2/3%) in aggregate principal am ount of the outstanding bonds, exclusive of issuer owned bonds. Unless this bond m atures on or prior to March 1, 1964, it is redeemable prior to m aturity in accordance w ith the provisions for redemption endorsed hereon. This bond and the coupons hereto attached are negotiable instrum ents and shall be negotiable by delivery. This bond may be registered as to principal, in accordance with the provisions for registration endorsed hereon. It is' hereby certified and recited that any and all acts, conditions and things required to exist, to happen and to be performed precedent to and in the incurring of the indebtedness evidenced by this bond and in the issuance of this bond exist, have happened, and have been performed in due time, form and manner as required by the Constitution and statutes of the State of Nevada, and th at this bond, together w ith all other indebtedness of the D istrict, is within every debt an.d other limit prescribed by the Constitution and Statutes of the State of Nevada. IN W IT N E S S W H E R E O F , the Board of Directors of said Las Vegas Valley W ater D istrict has caused this bond to be signed by the President of said Board and D istrict, and attested by the Secretary of said Board and D istrict and sealed w ith the corporate seal of said D istrict, and the interest coupons hereto attached to be signed by said President and Secretary by their facsimile signatures, and has caused this bond to be dated the first day of March, 1954. A T T E S T : Secretary of the Las Vegas Valley President of the Las Vegas Valley W ater W ater D istrict and of the Board D istrict and of the Board of Directors thereof, of Directors thereof. (SEAL) 12