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upr000255 166

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upr000255-166
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    University of Nevada, Las Vegas. Libraries

    \ lot Angeles * Oeloter 23, 1953 AES VSB MHB OMAHA SOI LOS ATOgpBR jf OHIO AES OMAHA CT VBB VHH OMAHA, SHE LOS ASOELSS 8-32A. Mr Beebe advisee EKB there have been no decisions in Bevada validating and approving eustomry revena© bond covenants which District proposes to insert in its heads for purpose of making than attractive to buyer*. District has not yet worked out text of covenants, hut la general they will contain provisions such as agreement to establish rates sufficient to produce revenues sufficient to service bonds, provide for segregation end funding of revenues, for annual audits, etc. There arc other legal questions which District may inject lute suit such as lawfulness of tolling water on motored basis and possibly questions relating to debt limitation provisions of Vevada Statutes. In view of fact that precise questions to he submitted to Supreme Court have net yet been finally determined by District, H I is not presently in position to give legal opinion with respect to these questions, but he agrees it is probably desirable for District to have court deci si one veil dat­ing authority of District to make customary revenue bond covenants. m 55 (Signed) WM. REINHARDT m lOtCCAK I28/J