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Nevada, the market value of which shall at all times equal the amount of funds so deposited as collateral security, and such securities shall be placed by the Treasurer in escrow in some bank other than the depositary of the funds of the District. In the event of the failure of the depositary to repay such funds to the District 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 with or without notice and the proceeds thereof used to reimburse the District. In the discretion of the proper officer or officers of the District the depositary may, in lieu of said deposit of such securities, be permitted to deliver to the Treasurer of the District 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 within this state, the penal amount of which shall at no time be less than the amount of money deposited by the District with 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 . I n v e s t m e n t o f F u n d s . Moneys in the Construction, Revenue, Bond Service, and Redemption Funds may be invested in direct obligations of the United States, provided the maturity shall not be later than eighteen (18) months from the date of investment. Moneys in the Reserve Fund may be invested in any authorized direct obligations of the United States. Obligations so purchased as an investment of moneys in any such funds shall be deemed at all times to be a part of such funds and the interest accruing thereunder and any profit realized from the investment shall be credited to such funds and any loss resulting from such investment 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 payment or transfer from such account or from such funds. Neither the District nor the Board of Directors nor any officer of the District shall be liable or responsible for any loss resulting from any such investment. Section 26. L o s t , D e s t r o y e d o r M u t i l a t e d B o n d s . In the event any bond and unmatured interest coupons pertaining thereto are lost, destroyed, or mutilated, 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 terms and conditions as the Board of Directors of said District may from time to time determine and prescribe by resolution. Section 27. C a n c e l l a t i o n o f B o n d s . All bonds and coupons surrendered to any fiscal agent of Las Vegas Valley W ater District in The City of Los Angeles, California, in the City of Chicago, Illinois, or in the City of New York, New York, for payment upon maturity or for redemption shall upon payment therefor be canceled immediately and forthwith transmitted to the Treasurer of the District. All of the bonds and interest coupons surrendered to the Treasurer for payment, upon purchase prior to maturity or for redemption shall upon payment 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. B o n d F o r m . That said bonds and coupons for the interest thereon shall be issued in substantially the following form : U N ITED STA TES O F AM ERICA ST A TE O F NEVADA LAS VEGAS V A L L E Y W A T E R D ISTRICT W A TERW O R K S BOND, 1954 No.............i $1,000 LAS VEGAS V A L L E Y W A T E R DISTRICT, 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 ON E THOUSAND D O LLARS, with interest thereon 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, that if at the maturity 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 Treasurer of the District in the City of Las Vegas, Nevada, or at any fiscal agency of the Las Vegas Valley W ater District 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 District designated “Las Vegas Valley W ater District Waterworks 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 majority of the qualified electors of said District 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 District and the full faith, credit and resources of said District (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 terms, 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 District on January 8, 1954. By the terms of Chapter 167, Statutes of Nevada, 1947, as amended and supplemented, and by covenant expressed in said resolution, subject to the limitation that the rates and charges shall be reasonable, the officers of the District are obligated to fix rates and collect charges for service from the works or properties of the District 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 District 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 District 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 manner 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 amount of the outstanding bonds, exclusive of issuer owned bonds. Unless this bond matures on or prior to March 1, 1964, it is redeemable prior to maturity in accordance with the provisions for redemption endorsed hereon. This bond and the coupons hereto attached are negotiable instruments 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 that this bond, together with all other indebtedness of the District, is within every debt and other limit prescribed by the Constitution and Statutes of the State of Nevada. IN W IT N ESS W H E R E O F , the Board of Directors of said Las Vegas Valley W ater District has caused this bond to be signed by the President of said Board and District, and attested by the Secretary of said Board and District and sealed with the corporate seal of said District, 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 District and of the Board District and o,f the; Board of Directors .thereof, of Directors thereof. 111 (SEAL) 12