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#2 Mr. Thomas A. Campbell 1-18-57 (Section l6d). As originally enacted in 1947, Section 19 of the District Act provided that no other law and no other board other than the governing body of the district "and the Public Service Commission of the State of Nevada" had any authority over the doing of any acts authorized by the District Act. In 1951, Section 19 was amended by repealing the above-quoted reference to the Public Service Commission. The 1951 amend­ment also extensively amended the bond provisions of the Act (Section 16) and added Sections l6 a to l6 i, Inclusive, thereto. Section l6d was added in 1951, stating that, so far as possible, debt service on bonds was to be paid from water revenues, and Imposed on the Board of Directors the duty of fixing reasonable water rates and charges sufficient to pay maintenance and opera­tion expenses, general district expenses, and principal and Interest coming due on the bonds. Section l6 d, among other things, provides: "The board shall from time to time establish reasonable rates and charges for the products and services furnished by such works and properties, and no board or commission other than the governing body of the district shall have authority io fix or supervise the making of such rates arid charges.w (femphasls added.) On January 8, 1954, the Board of Directors of the district adopted its resolution providing for the issuance of 48,700,000 of bonds, maturing in various amounts from 1957 to 199O, said bonds payable not only by water revenues but, to the extent that such revenues were Insufficient, also from a general tax on all taxable property in the district. Section 22 of the resolution sets forth various covenants made with the bond­holders. Covenant 7 provides that, subject to the limitation that rates and charges should be reasonable, the Board of Directors shall fix water rates and charges so that after pay* ment therefrom of expenses of maintenance and operation and general district expenses the remaining revenues will be at least 1.40 times the maximum annual debt service (based upon the interest rate at which the bonds were sold, maximum annual debt service is equal to 4502,675). Covenant 10 provides that no additional Indebtedness can be incurred or bonds Issued unless the district's net water revenues remaining after payment of maintenance and operation expenses and general district expenses are sufficient to pay (1) twice the maximum annual interest cost on both the old and the new debt, and (2) 1.35 4 times the maximum