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n Cove** nants with /bond holders Hates & charges impos ed Govern­ing body to fix rates Refund­ing bonds authoriz­ed Rights of bond holders such reserve for contingencies as may be provided in such resolution. Moneys in the sinking fund shall be applied to the payment of interest on and principal of the bonds or to the purchase or retirement of the bonds prior to maturity in such manner as may be provided in said resolution. The resolution authorizing such bonds may Contain such cove­nants with the future holder or holders of the bonds as to the management and operation of the works or properties, the imposition and collection of rates and charges for the prod­ucts or services furnished thereby, the disposition of such rates and revenues, the issuance of future bonds and the cre­ation of future liens and encumbrances against said works or properties and the revenues thereof, the carrying of insurance on the properties constituting such works, the disposition of the proceeds of any such insurance, and other pertinent matters as may be deemed necessary by the governing body to assure the marketability of such bonds; provided, such covenants are not inconsistent with the provisions of this act When any district shall issue bonds hereunder and shall have pi edged the rev enues of any works or proper ties for the pay** ment thereof as herein provided, such district shall impose and collect rates and charges for the products and services furnished by such works or properties in such amounts and at such rates as shall be fully sufficient at all times to pay the expenses of operating and maintaining such works or properties, provide a sinking fund sufficient to assure the prompt payment of principal of and interest on the bonds as each falls due, provides such reasonable fund for contin­gencies as may be required by the resolution authorizing bonds and provide an adequate depreciation fund for such repairs, extensions and improvements to the works or prop­erties as may be necessary to assure adequate and efficient service to the public. No board or commission other than the governing body of the district shall have authority to fix or supervise the making of such rates and charges. The govern­ing body of any district which shall have issued bonds pay­able from revenues under the provisions of this law may authorize the issuance of bonds for the purpose of refunding such outstanding bonds. Such refunding bonds may either be sold and the proceeds applied to the retirement of the outstanding bonds, or may be delivered in exchange for the outstanding bonds. The refunding bonds shall be authorized in all respects as original bonds are herein required to be authorized, and the governing body in authorizing the refund­ing bonds shall provide for the security of such bonds and the source from which bonds are to be paid and for the rights of the holders thereof in all respects as herein author ized to be provided for other bonds issued under authority of this act. The governing body may also provide that the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the bonds refunded. §| Sec. I?. That in addition to all other remedies, any holder of a bond of the district incorporated under this act, includ­ing a trustee for bond holders, shall have the right, subject to any contractual limitations binding upon such bond hold­ers or trustee, and subject to the prior or superior rights of $ s' ? (Senate Bill No. I67 - Senator Baker - Continued) : *13*