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and collected in the same m anner as state and county taxes and the proceeds thereof shall be paid to the T reasurer of the D istrict to be used for the purposes for which the tax was levied. All taxes levied as herein provided shall constitute a lien on the property charged therew ith from the date of the levy thereof by the County Commissioners, or the entry thereof on the assessment roll of the County Auditor, until the same are paid, and thereafter, if allowed to become delinquent, shall be enforced in the same m anner as is now provided by law for the collection of state and county taxes. No additional allowance, fee or compensation shall be paid to any officer for carrying out the provisions of this section. In the event th at the total taxes requested to be levied in any one year by the D istrict and the political subdivisions which overlap it should exceed fifty mills and reduction thereof shall be necessary by reason of the restriction contained in Section 2 of Article X of the Constitution of Nevada, the board charged with the duty of m aking such reductions and allocations is hereby required to allocate to the D istrict sufficient taxes to assure the payment to the D istrict of money sufficient to make certain the prom pt paym ent of principal of and interest on any bonds of the D istrict which may have been issued w ith the pledge of the full faith, credit and resources of the District, and where bonds have so issued, the D istrict shall be regarded as a political subdivision of the State of Nevada for the purposes of Chapter 233, Statutes of Nevada, 1947, and the provisions of said chapter shall be applicable to said District. Section 12. Equality of Bonds, Pledge of Revenues. Bonds of this issue shall be equally secured by the revenues of and from the works and properties of the D istrict (including works and properties hereafter constructed or acquired) and by the tax receipts of the District. No bond of the District, w hether a general obligation bond or a bond payable solely from revenues, shall have any priority w ith respect to paym ent of principal and interest out of the revenues of the D istrict over the bonds herein ordered issued or over any other bonds of the D istrict heretofore or hereafter issued. All of the revenues of the D istrict after paym ent of costs of operating and m aintaining the works and properties and the general expense of the D istrict are hereby pledged for the security of the bonds and such revenues and any interest earned on such revenues shall constitute a tru st fund for the security and payment of the bonds and the interest thereon. Said revenues and the funds derived therefrom shall be used only as perm itted under the term s of this resolution and Chapter 167, Statutes of Nevada, 1947, as amended and supplemented. Section 13. Funds'. There are hereby established in the T reasury of the D istrict the following separate fu n d s: 1. W A T E R W O R K S BO N D S, 1954, A C Q U IS IT IO N AND C O N ST R U C TIO N FU N D (herein referred to as “Construction F und”) ; 2. W A T E R W O R K S BONDS, 1954, R E V E N U E FU N D (herein referred to as “Revenue F und”) ; 3. W A T E R W O R K S BONDS, 1954, SIN K IN G FU N D (herein referred to as “Sinking F und”), in which the following subfunds shall be established: (a) Bond Service (herein referred to as “Bond Service F und”), (b) Bond Redemption (herein referred to as “Redemption F und”), and (c) Reserve for Contingencies (herein referred to as “Reserve F und”) ; 4. W A T E R W O R K S M A IN TE N A N C E AND O P E R A T IO N FU N D (herein referred to as “M. & O. F und”). Section 14. Construction Fund. The purpose of the Construction Fund hereinbefore estab­lished is to insure the application of the proceeds received on the sale of the bonds to the purposes stated in the notice of election (said purposes being stated in the bond proposal set forth in the recitals hereof), for which purposes said bonds are to be issued. The T reasurer of the D istrict shall immediately upon receiving the proceeds of the sale of the bonds place said proceeds in the Construction Fund. The money set aside and placed in the Construction Fund shall be applied exclusively to said purposes and shall remain in said Construction Fund until from time to time expended for the purposes stated in the notice of election, the payment of the incidental expenses in connection therew ith, the paym ent of expenses incurred in connection w ith the authorization and issuance of the bonds, the payment of interest on the bonds during the period of construction of any improvements for which the bonds were voted and for six months thereafter, and repayment 5 to Clark County of any amounts advanced to the D istrict by said county which amounts have not been repaid at the time the bonds are issued; provided, however, th at money may be paid or transferred from the Construction Fund in furtherance of the purposes of its establishment, to any other such separate fund established for a like purpose in connection with the bonds, and any proceeds so transferred shall be applied exclusively to said purposes. Section 15. Revenue Fund. All moneys received by the D istrict from the sale or distribution of w ater or otherwise derived from the works or property of the D istrict shall be paid into the Revenue Fund, and no disbursements shall be made from said fund except as provided in this resolution. Section 16. Maintenance and Operation Fund. The necessary and reasonable costs of the operation and maintenance of the works and properties of the D istrict and the general expenses of the D istrict shall be paid from the revenues prior to the payment of principal and interest on the bonds and the sums for other security funds as provided in this resolution. Moneys required for said operation and maintenance and general expenses shall from time to time be set aside from the Revenue Fund and transferred and paid into the M. & O. Fund. The maintenance and operation expenses and the general expenses of the D istrict shall be paid from said M. & O. Fund. Section 17. Sinking Fund. The purpose of the Sinking Fund and its subfunds, as herein­before established, is to insure prom pt payment of the principal of and interest on the bonds, when due and payable, to pay the purchase price of bonds, if any, purchased prior to m aturity, and in the event said bonds shall be called for redemption before m aturity, to insure prompt paym ent of the principal of and premium on the bonds redeemed on the redemption date. Section 18. Bond Service Fund. The purpose of the Bond Service Fund hereinbefore established is to insure the payment, when due and payable, of the principal and interest on the bonds. On the date of the bonds and thereafter until the date the first instalm ent of interest is due, on the first day of each m onth there shall be set aside from the Revenue Fund and transferred to and placed in the Bond Service Fund a sum at least equal to 1/12 of said first annual instalment. No such transfers from the Revenue Fund for the payment of said first instalm ent need be made prior to actual delivery of the bonds and until after the D istrict shall have acquired the water facilities of the Las Vegas Land and W ater Company; provided, however, that not later than the first day of the fourth m onth next succeeding the month in which the D istrict shall acquire the facilities of the Las Vegas Land and W ater Company and on the first day of each month thereafter until said first instalm ent is due, the amount required to meet said first instalm ent shall be set aside from the R evenu^ Fund and transferred to and placed in said Bond Service Fund in approxim ately equal m onthly sums, each to be set aside and placed in the Bond Service Fund in such time that the total am ount of such first instalm ent of interest is in said Bond Service Fund at least one month prior to the date said first instalm ent falls due. On M arch 1, 1955, and thereafter so long as any of the bonds are outstanding, on the first day of each m onth there shall be set aside from the Revenue Fund and transferred to and placed in said Bond Service Fund a sum at least equal to 1/6 of the payment of the semiannual interest next coming due on said bonds. On March 1, 1956, and m onthly thereafter on the first day of each m onth so long as any of the bonds are outstanding there shall be set aside from the Revenue Fund and transferred to and placed in said Bond Service Fund a sum at least equal to 1/12 of the next m aturity or m aturing instalm ent of the principal of such bonds. D u rin g the year next preceding the principal payment date of the last m aturity of bonds then outstanding, the amounts required to be set aside m onthly for payment of the last m aturing instalm ent of principal of and interest on said bonds need not be in amounts greater than necessary to produce a sum which, when added to any am ount in the Reserve Fund available for such payment (as hereinafter more particularly provided in Section 19 hereof), will be sufficient to pay said last m aturing instalm ent of principal of and interest on said bonds upon the date when the same may be due and payable. Said sums shall be set aside from the Revenue Fund and transferred to and placed in the Bond Service Fund in such time th at the next m aturing instalm ent of principal of and interest on the 6