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~~ " ~ r , " , , , I I II . ,... ~. -, .L " '., ... CHAPTER 1 FINANCING SINCE the second annual report covering the period from Jnly 1,1938 to June 30,1940, constl'llction costs have continued to be financed from the final issue of $60,000,000 of 5 % bonds sold to the Reconstruction Finance Corporation on March 4, 1938, During the period from July 1, 1940 to June 30, 1941, interim cer- tificates evidencing payment for $12,096,000 of said bonds were de- livered to the Corporation, As stated in the previous report, while this final issue of bonds bore interest at the rate of 5 % per annum, the Reconstruction Finance Corporation agreed to adjust the in- terest rate to 4 % per annum until March 31, 1942, so long as it held such bonds or interim certificates issued to evidence payment therefor. Interest refunds were made to the District accordingly on the $12,096,000 of bonds. The $20,088,000 of bonds delivered to the Reconstructiou Finance Corporation during the period covered by the previous report, plus the aforementioned $12,096,000 of bonds, left a balance of $27,816,- 000 of bonds to be delivered under the sale of March 4, 1938, On June 13, 1941, the Board of Directors found and determined that the District had sufficient funds to complete the initial construction of the aqueduct, and the Reconstruction Finance Corporation was requested to release the District from its obligation to deliver the $27,816,000 of ondelivered bonds, (On July 7, 1941, the Recon- stroction Finance Corporation adopted a resolution granting the District's request, and on July 18, 1941, the Board of Directors of the District adopted a resolution accepting the resolution of the Corporation,) Reftnnncing Operntions In October 1940, the Reconstruction Finance Corporation offered to exchange the aforementioned $12,096,000 of 5% bonds (interim certificates) for a like aggregate amount of refunding bonds, $1,- 512,000 thereof to bear interest at the rate of 4 % per annum, and [II ]