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0, principal am ount o f the bonds then outstanding or their representatives duly authorized in w riting. T hat the D istrict w ill cause its books and accounts to be audited annually b y an independent certified public accountant and w ill make available for inspection by the bond ­holders, at the office of the Treasurer of said D istrict, and at each fiscal agency o f the D istrict in T h e City of L os A ngeles, California, the City o f Chicago, Illinois, and the C ity o f N ew Y ork, N ew Y ork, a cop y of the report o f such accountant, and w ill also upon paym ent o f a reason­able charge furnish a cop y thereof upon request to any bondholder. Covenant 6. That no water or other service from the w orks or properties o f the D istrict m ay be furnished or rendered b y the D istrict to any city, tow n, county, public corporation or political subdivision of the State o f N evada free, nor shall any such service be rendered at low er rates than those charged other persons for similar services; provided, how ever, that w ater m ay be furnished for fire protection purposes to such cities, tow ns, counties, public corporations or political subdivisions at low er rates, but no such rate or rates shall be less than the cost o f the service, including reasonable overhead. Buildings or other property of the D istrict shall not be furnished free or at any rate or charge less than the reasonable rental thereof, and shall not be sold at less than the reasonable value thereof. C ovenant 7. Subject to the lim itation that the rates and charges shall be reasonable, the Board shall from time to tim e fix and collect from all users thereof, rates and charges for the service, facilities and w ater of the D istrict w hich w ill be sufficient, after m aking allowances for contingencies and error in the estimates, to pay the follow in g items o f cost and expense in the order set forth in the follow in g table, to w it : (a ) costs of operating and m aintaining the w orks and properties o f the D istrict; (b ) the general expenses o f the D istrict; (c ) the principal and interest on all outstanding bonds o f the D istrict as the same fall due, and the paym ents required to be made into the Sinking Fund for said b o n d s; and the rates and charges shall be so fixed that annually, after paym ent from revenues of the costs of operation and maintenance and the general expenses o f the D istrict, the rem aining revenue shall be at least one and 40/100ths (1.40) times the m axim um annual debt service. C ovenant 8. O n M arch 1, 1955, and yearly thereafter on M arch 1, if after paym ent of all the items of cost and expense for the previous year, as set forth in the table in Covenant 7 hereof, there shall remain in the R evenue Fund m oneys in excess o f the sum o f $500,000, any m oneys in excess o f said sum o f $500,000 shall be set aside from said R evenue Fund and transferred to and placed in the R edem ption Fund. Covenant 9. N o additional bonds of the D istrict shall be issued under any law of the State o f N evada having any priority in paym ent o f principal and interest out o f the taxes to be levied by the D istrict or out of revenues o f the w orks or properties o f said District, or both, over bonds hereby authorized to be issued and payable out of said taxes and revenues. Covenant 10. That no additional indebtedness or bonds o f the D istrict payable out o f revenues from the w orks or properties of the D istrict or w hich m ay be paid out of such revenues shall be created or incurred unless First: T h e net incom e o f said w orks and properties before depreciation, am ortization (including transfers to the Redem ption Fund) and interest chargeable to incom e account, as show n b y the books of the D istrict for the latest prior fiscal year with respect to which such books have been exam ined and reported upon by an independent certified public accountant em ployed b y the District, plus, at the option o f the District, either or both o f the items hereinafter in this Covenant designated (a) and (b ), shall have am ounted to (1 ) at least tw ice (2 ) the am ount o f interest to accrue in that one o f the fiscal years ending thereafter in w hich tfie interest so to accrue w ill be the greatest o f all indebtedness outstanding im m ediately subsequent to the incurring of such additional indebtedness, and (2 ) at least one and 35/100 (1.35) times the aggregate o f the am ount of interest to accrue and paym ents of principal (exclusive of principal m aturing M arch 1, 1990, o f bonds authorized hereunder) required to be made in that one o f the fiscal years ending thereafter in w hich such aggregate (exclusive o f principal m aturing M arch 1, 1990, o f bonds authorized hereunder) will be the greatest on all indebtedness to be outstanding im m ediately subsequent to the incurring of such additional indebtedness. 9 T h e items either or both o f w hich m ay be added to such net incom e for the purpose of applying the restriction contained in this Covenant 10 are the follow in g : (a ) A n allow ance for earnings from any investm ent m ade in additions to the w orks and properties of the D istrict (including investm ent in construction w ork in progress) which, during all or any part o f said fiscal year, w ere not in service, and any investment to be made in additions to the w orks and properties o f the D istrict (i) out of the proceeds of bonds previously issued, or (ii) out of the proceeds of the bonds representing such additional indebtedness; the am ount o f such allow ance to be 3 3-1/3% (or, in the case o f any such investm ent so made or to be made in the acquisition o f all or any part o f an operating water system serving custom ers when acquired, 100% ) of that proportion o f said net incom e w hich the am ount of the investm ent so made and to be made in such additions to the w orks and properties of the D istrict bears to the total investm ent of the D istrict in w orks and properties in service at the close of said fiscal year (prorated with respect to any such additions w hich w ere in service during a portion of said fiscal y e a r ); (b ) A n allow ance for earnings arising from any increase in water rates w hich has becom e effective prior to the incurring o f the additional indebtedness but w hich during all or any part of said fiscal year was not in effect in an am ount equal to 75% o f the am ount b y w hich the billings to custom ers for such fiscal year w ould have been increased if such increase in rates had been in effect during the w hole o f such fiscal year. Section 23. Remedies for Enforcement. That in addition to all other rem edies, any holder of a bond of the District, including a trustee for bondholders, shall have the right, subject to any contractual limitations binding upon such bondholders or trustee, and subject to the prior or superior rights o f o th ers: (1) B y mandamus or other suit, action or proceedings, at law or in equity, to enforce his rights against such D istrict and the Board of D irectors of such D istrict, including the right to require such D istrict and such Board to fix and collect rates and charges adequate to carry out any agreem ent as to, or pledge of, the revenues produced by such rates or charges, and to require such D istrict and such Board to carry out any other covenants and agreements w ith such bondholder and to perform its and their duties pursuant to law. (2) B y action or suit in equity to enjoin any acts or things which m ay be unlawful or a violation o f the rights o f such bondholder. (3) B y action or suit in equity to require such D istrict to act as if it w ere the trustee o f an express trust for such bondholder. (4) B y suit, action, or proceeding in court exercising equitable jurisdiction to obtain the appointm ent o f a receiver of the enterprise in w hich the D istrict is engaged or any part or parts thereof, w ho m ay enter and take possession of such utility or any part or parts thereof, including all property, land, property rights, easements, and other adjuncts of the utility, and such receiver m ay operate and maintain the same, and collect and receive all revenues thereafter arising therefrom in the same manner as such D istrict itself m ight do, and shall deposit all such m oneys in a separate account or accounts and apply the same in accordance w ith the obligations o f such D istrict as the court shall direct. Section 24. Depositaries of Moneys, Security for Deposits. A ll m oneys received b y the D istrict under the provisions of this resolution shall be deposited in such state or national banks in the State o f N evada as the Treasurer of the D istrict shall designate; provided, how ever, that the Sinking Fund and the subfunds thereunder m ay be kept on deposit in any national bank or banks within or w ithout the State of N evada as the Board of D irectors shall designate b y resolution. A ll m oneys deposited under the provisions o f this resolution shall be trust funds under the terms hereof, and shall not be subject to lien or attachment b y any creditor o f the D istrict. Such m oneys shall be held in trust and applied in accordance with the provisions o f this resolution. N o m oneys shall be deposited w ith any depositary outside the State o f N evada in an amount exceeding fifty percentum (5 0 % ) o f the am ount w hich an officer of such depositary shall certify to the Board of D irectors as the com bined capital and surplus of such depositary. A ll m oneys w hich are deposited in any depositary within the State of N evada shall be continuously secured for the benefit o f the D istrict and the holders of the bonds b y depositing w ith the Treasurer o f the D istrict treasury notes, U nited States bonds, or bonds of the State o f 10