upr000036 57

Bonds sold at public or pri­vate sale Amount of bond* Priority of series Bonds negotia­ble in­stru­ments Bond sinking fund and attested by the secretary of the dietriet under the official seal of the district in such maimer as stay be provided in the resolution authorising their issuance* Interest coupons to be attached to the bonds may be executed with the fac­simile signatures of such officers, and in the event any officer whose signature appears on such bond or coupons shall cease to be such officer before delivery of the bonds to the pur­chaser, such signature shall nevertheless be valid and suffi­cient for all purposes. The bonds shall be sold in suoh manner and at such times as the governing body may determine at public or private sale for moh prices m the governing body shall approve, except that in no event shall the bonds be sold at a price which will result in an Interest yield there­from of more than six percent per annum computed to aver­age maturity according to standard tables of bond values. The bonds may be Issued in an amount sufficient to include the payment of all incidental costs incurred in connection with the construction, acquisition, extension or improvement of the works or properties and the authorisation and issuance of th* bonds, including, but without limitation, engineering and legal fees, fiscal agent’s expenses and payment of the interest during the period of the construction of the works or properties and for 'six months thereafter, Fending the preparation or executing of definitive bonds, interim receipts or certificates or temporary bonds may be delivered to the purchaser of said bonds. Bonds issued hereunder shall be payable from and secured by a pledge of the revenues derived from the' operation of the works or properties con­structed, acquired, extended, or Improved with the proceeds thereof, subject only to the prior payment of the reasonable and necessary expenses of operating and maintaining suoh works or properties. If more than one series of bonds shall t>« issued hereunder payable from the revenues of any works or properties, priority of lien on suoh works or properties and the revenues thereof shall depend on the time of the delivery of suoh bonds, suoh series enjoying * lien prior and superior to that enjoyed by any series of bonds subsequently deliv­ered; provided, however, that as to any issue or series of bonds which may be authorised as a unit but delivered from time to time in blocks, the governing body may in the .pro­ceedings authorising the Issuance of said bonds provided that all of the bonds of suoh series or issue shall oo-equal as to lien regardless of the time of delivery. All bonds lssusd under the provisions of this act shall constitute negotiable Instruments within the meaning of the negotiable instru­ments law as -that law is now or may hereafter be In force In , the State of ftovada. Any resolution authorising the issu­ance of bonds hereunder shall provide for the creation of a sinking fund into which shall be paid from the revenues of the works or properties, subject only to prior payment of the reasonable and necessary sxpens ss of operating and maintaining the works or properties, sums fully sufficient to pay principal of and interest on such bonds and to create -12- (Senate Bill Ho. 16? - Senator Baker - Continued) - 1 2 -