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i m N evada, the market value o f w hich shall at all times equal the am ount o f funds so deposited as collateral security, and such securities shall be placed b y the Treasurer in escrow in som e bank other than the depositary o f the funds o f the District. In the event o f 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 m ay be sold by him w ith or w ithout notice and the proceeds thereof used to reim burse the District. In the discretion of the proper officer or officers o f the D istrict the depositary m ay, in lieu o f said deposit o f such securities, be perm itted to deliver to the Treasurer o f the D istrict an indem nifying bond or bonds o f a corporate surety, qualified as sole surety on bonds or undertakings required b y the laws o f the State o f N evada and approved b y the insurance com m ission o f the State o f N evada as a com pany possessing the qualifications required for the purpose o f transacting a surety business within this state, the penal am ount of w hich shall at no tim e be less than the am ount o f m oney deposited b y the D istrict with such depositary. A ll m oneys deposited with each depositary shall be allocated to accounts designated to indicate the particular fund or account to w hich any such m oneys belong. Section 25. Investment of Funds. M oneys in the Construction, Revenue, Bond Service, and R edem ption Funds m ay be invested in direct obligations o f the U nited States, provided the m aturity shall not be later than eighteen (18) m onths from the date of investment. M oneys in the R eserve Fund m ay be invested in any authorized direct obligations of the U nited States. O bligations so purchased as an investm ent o f m oneys in any such funds shall be deemed at all tim es to be a part o f 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. T h e Board of D irectors shall sell at the best price obtainable or present for redem ption any obligations so purchased w henever it shall be necessary to do so in order to provide m oneys to m eet any paym ent or transfer from such account or from such funds. N either the D istrict nor the B oard o f D irectors nor any officer o f the D istrict shall be liable or responsible for any loss resulting from any such investm ent. Section 26. Lost, Destroyed or Mutilated Bonds. In the event any bond and unmatured interest coupons pertaining thereto are lost, destroyed, or mutilated, upon request of the bearer or registered ow ner thereof, a new bond a n d /or coupons similar to the original w ill be issued to replace the same, in such manner and upon such reasonable terms and conditions as the Board o f D irectors o f said D istrict m ay from tim e to tim e determ ine and prescribe b y resolution. Section 27. Cancellation of Bonds. A ll bonds and coupons surrendered to any fiscal agent o f Las V ega s V alley W ater D istrict in T he City o f L os A ngeles, California, in the City of Chicago, Illinois, or in the City of N ew Y ork, N ew Y ork, for paym ent upon m aturity or for redem ption shall upon paym ent therefor be canceled im m ediately and forthw ith transm itted to the Treasurer o f the D istrict. A ll of the bonds and interest coupons surrendered to the Treasurer for paym ent, upon purchase prior to m aturity or for redem ption shall upon paym ent therefor be canceled im m ediately. A ll o f 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 hat said bonds and coupons for the interest thereon shall be issued in substantially the follow in g fo r m : U N IT E D S T A T E S O F A M E R IC A S T A T E O F N E V A D A L A S V E G A S 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 B O N D , 1954 N o .................. .. $1,000 L A S V E G A S V A L L E Y W A T E R D IS T R IC T , a public corporation situated in Clark C ounty, State of N evada, for value received, hereby acknow ledges its indebtedness and prom ises to pay to the bearer or, if this bond be registered, to the registered ow ner hereof, on M arch 1, 19...., upon presentation and surrender of this bond, the sum o f O N E T H O U S A N D D O L L A R S , w ith interest thereon at the rate o f ........% Per annum, payable annually for the first year and semiannually thereafter, on the first days o f M arch and Septem ber o f 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, how ever, that if at the maturity date o f this bond or, if the same is redeem able and shall be duly called for redem ption, then at the date fixed for redem ption, funds are available for the paym ent or redem ption thereof, as provided in the resolution hereinafter m entioned, this bond shall then cease to bear interest. Principal and interest and any premium upon the redem ption hereof are payable in lawful m oney o f the U nited States of Am erica at the office of the Treasurer o f the D istrict in the City o f Las V egas, Nevada, or at any fiscal agency of the Las V egas V alley W ater D istrict in T h e City o f L os Angeles, California, in the City o f Chicago, Illinois, or in the City o f N ew Y ork, N ew Y ork, at the option of the holder hereof. This is one of a duly authorized issue o f bonds o f the D istrict designated “ Las V egas V alley W ater D istrict W aterw orks Bonds, 1954” , hereinafter called “ the bonds” , all o f which have been issued pursuant to Chapter 167, Statutes o f Nevada, 1947, as amended and supple­mented, and in pursuance o f the Law s and Constitution o f the State o f N evada and is authorized b y the affirmative vote and assent o f m ore than a m ajority o f the qualified electors of said D istrict votin g 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 o f said D istrict (subject to existing Constitutional restrictions) are hereby pledged to their paym ent. Pursuant to said Chapter 167, principal and interest on said bonds shall, so far as possible, be paid from the revenues from the w orks and properties o f the District. T h e terms, conditions and covenants o f the bonds are provided for b y a resolution authorizing the bonds, adopted b y the Board o f D irectors o f the Las V egas V alley W ater D istrict on January 8, 1954. B y the terms o f Chapter 167, Statutes o f Nevada, 1947, as amended and supplemented, and b y covenant expressed in said resolution, subject to the lim itation that the rates and charges shall be reasonable, the officers o f the D istrict are obligated to fix rates and collect charges for service from the w orks or properties of the D istrict such as to provide revenues sufficient to pay the necessary expenses of maintenance and operation o f such w orks and properties, the general expenses o f the D istrict and the principal and interest on the bonds, as the same becom e due. T h e covenants expressed in said resolution im pose upon the officers o f the D istrict certain other obligations to the holders o f the bonds, restricting transfers out of the R evenue Fund, and im posing conditions with respect to any sale or lease o f said works and properties and the creation of additional debt. In the manner provided in said resolution, certain o f the covenants and obligations contained therein m ay be w aived w ith the consent of the holders o f sixty-six and two-thirds per cent (6 6 -2 /3 % ) in aggregate principal am ount o f the outstanding bonds, exclusive of issuer ow ned bonds. U nless this bond matures on or prior to M arch 1, 1964, it is redeem able prior to maturity in accordance with the provisions for redem ption endorsed hereon. This bond and the coupons hereto attached are negotiable instruments and shall be negotiable b y delivery. This bond m ay be registered as to principal, in accordance w ith 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 perform ed precedent to and in the incurring o f the indebtedness evidenced b y this bond and in the issuance o f this bond exist, have happened, and have been perform ed in due time, form and manner as required b y the Constitution and statutes o f the State o f Nevada, and that this bond, together with all other indebtedness of the District, is within every debt and other lim it prescribed b y the Constitution and Statutes o f the State o f Nevada. IN W IT N E S S W H E R E O F , the Board of D irectors o f said Las V egas V alley W ater D istrict has caused this bond to be signed b y the President o f said Board and D istrict, and attested b y'th e Secretary o f said Board and D istrict and sealed with the corporate seal o f said District, and the interest coupons hereto attached to be signed b y said President and Secretary b y their facsim ile signatures, and has caused this bond to be dated the first day o f M arch, 1954. A T T E S T : Secretary o f the Las V egas V alley President o f the Las V egas Valley. W ater : W ater D istrict and o f the Board D istrict and of the Board o f D irectors thereof, of D irectors thereof. (SEAL) 12