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Civil action Moneys depos­ited in banks Moneys secured by surety bonds U.S. Bonds as s e- curity Discre­tion of the treas­urer Contracts of in­demnity, etc* also bring a civil action for damages sustained by any such act, and in such proceeding the prevailing party shall also be entitled to attorney's fees and costs of court. Sec. 11. All moneys belonging to or in the custody of the water district shall, so far as possible, be deposited in such state or national bank or banks in this state as the treasurer or other officer of such water district having 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 authorized officer. For the security of such deposits there shall be delivered to the treasurer of such water district a bond or bonds of a corporate surety qualified to act as sole surety on bonds or undertakings required by the laws of this state, and approved by the insurance commissioner 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 bonds or bond shall at no time be less than the amount of money deposited by such water district with such depositary; said bond or bonds shall secure and guarantee the full and complete 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 directors of the water district, may be paid out of the funds so deposited or may be required to be paid by the depositary; provided, however, that said depositary may, in lieu of said corporate surety bond or bonds, deposit with the treasurer of such water district treasury notes or United States bonds, or other securities which are legal investments for savings bonds in this state, the market value of which shall at all times equal the amount of funds so depos­ited as collateral security, and such securities shall be placed by such treasurer in escrow in some bank other than the depositary of the funds of such district. In the event of the failure of the depositary to repay such funds to the dis­trict: on demand, or to pay the same to its 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, or other officer, of such district having legal custody of its moneys, may, in his discretion, deposit such moneys, in whole or in part, in United States postal savings banks. He shall also have power to deposit such moneys in the same manner and under the same conditions as may be applicable to the deposit of state, county, and/or municipal funds by the legal custodians thereof. Sec. 12. The board of directors of any district now or hereafter organized under the provisions of this act shall have power to enter into contracts of indemnity and guar­anty, in such form as may be approved by said board, relating to or connected with the performance of any con­tract or agreement which said district shall be empowered tq enter into under the provisions of this act or any other law of this state. **10* (Senate Bill No* 167 - Senator Baker - Continued) -10-