Imperial Valley press., 1941-02-27

signed tecnnlcal amendments ana
ordered the $15,000,O00 refunding
agreement into effect.
Authorities in Ell Centre at dis
trict offices speeded up work i'm
mediately, checking lists of deposited
bonds and preparing 10 pay off ST.
273 400 in back interest on bonds
and warrants.
Lists from two of the bond depos-
itories are already in and one is
fully checked, the other partly. It
was estimated that no other cash
payments ON interest will be made
for about ten days. Procedure will
be for the district to forward lump
sum to repositories, who will in
turn distribute to bondholders.
The district offices, however, will
act as distributing agent in regards
to the warrant holders. A letter
was expected to go out soon to war;
rant holders, asking them that they
appear to endorse their warrants
and receive payment.
After repositories have disbursed
sums to those who have deposited
bonds with them, the district will
become the disbursing agent to un-
deposited bonds. Dissenting bond
! holders who have so far refused to
deposit under the refunding plan
representing less than six per cent
of the Whole-will be faced with
the alternatives of holding their
paper or turning their bonds in for
payment under the plan.
Complete fulfillment of the re-
funding plan will require about six
months, district counsel indicated.
1t will take this long to make all
the changes, although actual fund
disbursement will be done much
quicker. AS soon as the plan is fully
carried out, district counsel will
make application to the court for
a final decree, setting forth that
the plan has been put into effect
and the courts orders carried out.
There was still the possibility of
an appeal to higher court, in this
case the circuit court of appeals at
San Francisco. In view of the string
of rulings favorable to the districts
refunding plan, however, it was
considered possible that die hard
dlssenters might drop the case at
this point.
Four days ago Judge Jenney is
sued his favorable opinion, awaited
for many months. The delay before
going into effect was because of a
few technical changes the Judge
asked be included These were for
Warded to Los Angeles by district
counsel in Ell Centre and signed by
the judge Wednesday afternoon.
BY his signature, Judge Jenney
pulled the district out of bankruptcy
that has been hanging fire since
1882 when the district was unable
to meet its bond and interest obi
cations. AT that time district revenue
cropped so sharply that directors
would have had to levy a prohibitive
assessment in order to meet re-
quirementS. The 1882 plan followed,
which provided a so per cent cut
in interest for four year period
and extension of the bond expira-
ton dates.
AT the end of the four year period
it was evident that a radical read
Justment of debts would have to be
made in order to keep the district
above water. The present refunding
plan, known as a modification of
the 1882 plan, was the outgrowth of
that situation.
Briefly, the refunding program
releases $2,273,4 400 in accumulated
interest funds. Interest, under the
plan, is at rs per cent lower rate
Also released is $177,7O0, which is
divided among three sinking funds
continued on Page 2, Col. y