Imperial Valley press., 1916-01-04

po,ooO,oVO, IL any, Snaill De pa!u ny
bonds of said Irrigation District at
par and awarded to the Southern Pa
cific Company under the provisions
of this agreement.
Ninth-The Irrigation District
agrees that such bends shall be dated
IJanuary |, 1915, hearing interest a.
the rate of five tti) per cent per an
mum, payable semi annually (coupon.
for the first six months detached up
on the entire issue and one-half the
coupons for the interest on $847, 500. 90
falling due January 1, 1916, also to
be detachedD, and that two-fifths OF
said total issue Of $3,O00,OO0, face
value, of said bonds shall be of the
denomination of $4,000 and the re-
naming three-fifths to be of the de-
nomination of $1,000.0O. Such bonds
to be in such form as has heretofore
been approved by counsel of the South
ern Pacific Company.
Tenth-The bonds awarded to the
Southern Pacific Company as herein
before provided shall, within thirty
days after such award, be duly exc
cuted in the manner and form re-
quired by statute and shall be issued
and placed in escrow with the Los An
geles Trust and Savings Bank as trus-
tee. with copy of this agreement,
and shall be held by such trustee sub
ject to the terms hereof. The convey
provided for in Paragraph 4th hereof
knowledged and placed in escrow with
thn tu
days after the award of said bonds
to the Southern Pacific Company and
shall be held by said trustee subject
to the terms of this agreement.
Eleventh-Nothing herein contained
shall be construed to require the
Southern Pacific Company to trans
fer to the Imperial Irrigation Dis
trict any rights, claims or properties
agreed to be transferred hereunder
unless and until the validity of the
bonds agreed to be taken by the South
ern Pacific Company hereunder shall
have been established as hereinafter
provided; and. in the event that the
validity of such bonds is not so es-
tablished, all obligations of the South
ern Pacific Company hereunder shall
be terminated, but the Southern Pa
cific Company shall, upon demand.
repay to the Irrigation District, with
out interest, all moneys which the If
rigation District may have advanced
on account of the purchase price Of
such property unless said Irrigation
District has been otherwise reim-
bursed therefor; but this shall not be
deemed to entitle the District to re-
endorsement for moneys advanced
from water rentals on other revenue
from the property of the California
Development Company.
Twelfth-It is hereby agreed that
the bonds of the Imperial Irrigation
District, and all of the proceedings
leading up to the issuance of the same,
be submitted to Charles P. Eells, Esq,
for his opinion upon the validity of
such bonds and such proceedings, and
in the event he shall render an opin-
ion to the effect that said bonds are
q valid obligation of said Imperial
Irrigation District and will be valid
obligation of the said Imperial Irri-
cation District after they shall have
been delivered to the Southern Pa
cific Company under the terms Of
this agreement. the obligation of the
Southern Pacific Company to take the
same under it's purchase and to carry
out the provisions of this agreement
shall become absolute; provided, how
ever, that the Imperial Irrigation Dis
trict shall first secure certificate of
the State Controller that said bonds
are legal investments for trust funds,
commercial and savings banks, state
school funds, etc, under the laws OF
i is state. as provided by Section ~
of the Act of the Legislature of the
State of California relating to bonds
Of Irrigation Districts approved June
I4j, tS4o tStGts. 1913, Page 778), or
shall secure the passage of resolu-
tion or other official statement of the
Commission provided for by the last
mentioned act of the Legislature Of
the State of California, to the effect
that the aforesaid bonds are in all
respects approved by the said Com
mission for such certification, except
that the said district has not as yet
acquired any water rights or water
system, and that the said Commission
will finally make the favorable report
and findings provided for in Section
III of the aforesaid act as soon as the
said Irrigation District shall have ac-
quired the irrigation system herein
provided to be conveyed to said Dis
lCflCC. III tIle event Sdlu SildfIeS
Eells shall render an opinion to the
effect that said bonds are not q valid
obligation of said Imperial Irrigation
District, or are of doubtful validity,
or will not be a valid obligation OF
said Imperial Irrigation District afte.
they shall have been delivered 10 the
Southern Pacific Company under the
terms of the agreement, or will be of
doubtful validity. then, in that event
the Imperial Irrigation District shall
have the right to bring the necessary
action in the Superior Court of I'M
perial County within sixty (60) days
to test the question of the validity of
said bonds as an obligation of said
Imperial Irrigation District. as here.
in provided, and in such case the only
issue raised shall be the aforesaid is
sues. Such action. regardless of its
CONTINUED ON PAGE TWOl
J THIS IS A BARGAIN
II Exyorx, noxY &c n pornai