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Civil action Mousy# depos­ited In banka Money© asoured by surety bond© U.S. Bonds ©a se- ourlty Discre­tion of the treas­urer Contrasta of In­demnity , ©to. also bring a civil as tlon for damages austained by any such act, and In such proceeding the prevailing party ©hall ala© be entitled to attorney*a fee© and cost© of court. Sec. XX. All money# belonging to or in th© custody of the water district shall, so far as'possible, be deposited in auoh state or national bank or bank# in this state as the treasurer or other officer of sush water dietriet hawing legal custody of said moneys shall select for the safe-keeping thereof, and shall' be subject to withdrawal at any time on demand of the treasurer or other authorised officer. For the security of such deposits there shall be delivered to the treasurer of such water district a bond or bonds, of a ©orpor&ie surety qualified to act as sole surety on bond* or undertakings required by the laws of this state, and approved by the Insurance ocsa&csloner of this state as a company possessing the qualifications required for the pur­pose of transacting a surety business within this state| pro­vided, that the penal amount of such bond* or bond -shall at no time be lees than the amount of money deposited by such water district with such depositary; said bond or bond* shall secure and guarantee the full and ©caplet# repayment to such water district or the payment to its order of all funds so deposited, together with Interest thereon, the premium for such corporate surety bond or 'bonds, in the discretion of the director© of the water district, may be paid out of the funds e© deposited or may be required t© be paid by the depositary; provided, however, that said depositary may, in lieu ©f ©aid corporate surety bond or bonds, deposit with the treasurer of such water district tr©saury notes ©r United States beads, or other ©counties which are legal investments for saving© bonds in this state, the market value of which ©hall'at all times equal the amount of fund© so depoc- ited a© collateral security, and such securities ©hall be placed by such treasurer in escrow in son# bank other than the depositary of the fund© of' such district. In the event of the failure ©f the depositary to repay such fund* to the dis­trict on demand, or to pay the same to it© 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. The treasurer, ©r other officer, of such district having legal custody of it* moneys, may. In hi© discretion, deposit such moneys, in whole or in part, in United States postal savings bank*. He ©hall ale® have power to deposit such money© In the same maimer and under the same condition* a© may b# applicable to the deposit of state, county, and/or municipal funds by the legal mm tediaua thereof. > Boo. 12* The board of director© of any district now or X,/ hereafter ? organised under the provision© of this act shall have power to enter Into contract# of indemnity and guar­anty, in such form as may be approved by ©aid board, relating to or connected with, the performance of any con­tract or agreement which said district shall be empowered to enter into under the provision# of this act or any other law of this state* —10— (Senate Bill Ho. 16? - Sanator Baker - Continued) -10-