Imperial Valley press., 1916-01-04
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outcome in said Superior Court, shall
be prosecuted TO the Supreme Court in
this state, and in the event said SD
preme Court snail hold that said bonds
are valid obligation of said Imper-
ial Irrigation District and will be aft
er they shall have been delivered as
herein provided, then the obligation of
the Southern Pacific Company to car
~ out the terms Of this contract shall
be complete. In the event said Charles
p. Eells shall render an opinion to the
effect that said bonds are not, or. as
heretofore stated, will not be valid
obligation Of said Imperial Irrigation
District, or are of doubtful validity,
and it becomes necessary under this
agreement to prosecute an action IN
the courJs with reference thereto, the
Southern Pacific Company agrees that
it will appoint the Beard of Directors
of said Imperial Irrigation District its
agent in the management of the IT,
rication system of said California De-
velopment Company in California.
pending the determination as to the
validity Of said bonds Of the District.
as hereinbefore provided, and the
Southern Pacific Company will. so
far as it may lawfully do 50. likewise
appoint the said Boald of Directors
las agent in the management OF the
irrigation system owned by the so
called Mexican COMPANIES in Lower
California. As such agent the SAID
Board of Directors shall have power to
collect all revenues accrued or accru-
ing from the operation of said lrrlga-
tion system and, out of such revenues.
TO make such expenditures for better
mcnts, repairs and maintenance or
and svStCm as the majority Of said
Beard of Directors may, In their DIS
cretion, deem proper, and for the pay
ment Of interest due upon the aforc-
said bonds during said agency so far
as such revenues may be available Tor
that purpose, but the obligation Of
said District TO pay sald interest shall
not be relieved, or postponed, because
of any insuffIcleucy of said revenues
for that purpose; and said Board Cf
Directors shall likewise have author
ity 10 employ such offIcers. agents and
employees as may he necessary for the
efficient ard proper manarcmcnt OF
SAID irrigation system; provided tl)
that all such contracts Cf employment
may be terminated at any time by the
southern Gacltlc company; VI lnal
no expenditures shall be made. as
such agents. except from revenues de-
rived from the operation cf .a'd 'fri-
cation system, nor shall any liability
lie incurred that cannot be hquidatcd.
when due, from the currCl. revenue of
said system except with the consent
in writing Of the Southern Pacific
Company, nor shall the said Board Of
Directors create, OF permit L. tc ere
atod any liens upon tNa said irrigs-
ion system or any part thereof, and
the said Board Of Directors agrees TO
pay out of the revenues Of said sy5-
TEN any and all valid taxes or as
sessments that may he levied upon
and against the said irrigation systcm,
or any part thereof. Nothing herein
contained shall be deemed TO include
ny agreement on the part Of tho
Southern Pacific Company. express or
implied, to advance any moneys for
either maintenance, repairs or pro-
ect'op Of said irrigation system be
--o"d the revenues derived from the
operation of said system and available
for that purpose. The books and ac-