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Moreover, the letter of intent of March 17, 1948, contemplates the eventual liquidation of all the physical properties covered therein. It was not intended that service facilities should remain permanently in the operation and control of the Colorado River Commission. The sooner long term plans can be established for maintenance and operation of said water facilities the better will public interest be subserved. As presently constituted there is no assurance of continuity in the operation and maintenance of the water system. (i) In order to consummate the plans for the construction of additional works, it is necessary that bonds of the Water District be issued. Financial advisors and legal counsel for the District state that in order to market bonds of the District at a reasonable rate of interest it is essential that the Water District have sound and unencumbered title to all facilities necessary to the maintenance and operation of its water system. It is impractical for the Water District to lease the water facilities from the Colorado River Commission or to contract with said Commission for the wholesale purchase of water. Until payment of the minimum consideration or until the expiration of the twenty year period, as provided in the letter .of intent, the Colorado River Commission w ill tie unable to make any firm leases or commitments concerning said water facilities. Prior to that time the Com m i­ssion's rights are subject to termination. The only sound method for the financ­ing of the proposed additional facilities will be by the issuance of bonds which will run for a term of at least thirty years. The life of such bonds would necessar­ily be in excess of the period during which the Colorado River Commission could make any firm commitments. Bonds issued under such circumstances would be difficult to market, if marketable at a l l . Consequently, it is essential that the Water District show prospective bond purchasers that it has ownership of all the water facilities from the intake struc­ture at Lake Mead to delivery point at the consumers' property. Such ownership would enable the District to undertake its plans for future improvement and to market its bonds in a reasonable amount and at a reasonable rate of interest. TERMS A N D C O N D IT IO N S FOR THE TRANSFER OF THE WATER FACILITIES TO LAS V E G A S V A LLEY WATER DISTRICT. If this application is approved and if th$ voters within said Water District authorize the issu­ance of bonds for the construction of the additlonaf works herein described, then in that event it is agreed as follows: A . In consideration of the payment by the Water District of the fair value of the above described water facilities, less a credit, in public inter­est and benefit, lhe amount of said credit being a sum of one dollar less than said fair value, Reconstruction Finance Corporation, acting by and through General Services Administration, will quitclaim all its right, title and interest in said water facilities either to the State of Nevada, acting by and through its Colorado River Commission, or to the Las Vegas Valley Water District. - Administrator of General Services