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. r"" ,. 1~...\J ,140 METROPOLITAN WATER DISTRICT (12) To refund bonded indebtedness incurn~d by the district under and pur- suant" to the provisions of section 7 of this act, such refunding to be made in the following manner: (a) The board of directors by a two-thirds vote may refund such bonded indebt.edness, or any portion thereof, and issue refunding bonds of the district therefor maturing not later than fifty (50) years from the date of the first issue of the refunded bonds, if said refunded bonds shall have been issued in one block, or from the date of the respective installment of such refunded bonds., if the same shall have been issued in installments, and bearing interest at a rate not exceeding the interest rate on the refunded bonds. The provisions of subsections. (e), (0, (j), (k) and (1) of section 7 of this act, subject to the limitations and modifications imposed by this paragraph, shall apply to such refunding bonds. The provision in said subsection (e) for deferring the date of the earliest maturity of the principal of the bonds shall be construed to authorize the board of directors. in its dif;cretion, to determine and fix the date for the earliest maturity of the principal of said refunding bonds, which date shall be not later than fifteen (15) :,.eal's from the date of the first issue of the refunded bonds, or from the date of the respective installment of the refunded bonds, as the case may be. (b) Said refunding bonds may be sold by the board of directors as it shall determine, in the manner provided in subsection (g) of section 7 of this act for the sale of the bonds to be refunded, and the proceeds of the sale of ~uch refund. ing bonds, excE'pting premium and accrued interest, shall be placed in the treasury of the district to the credit of the "Refunding fund" and shall be applied onll-. to the purchasE', at not more than par and accrued interest, of the bonded indebtedness for which said refunding bonds shall have been issued. Premium and accrued interest shall be placed in the fund to be applied to the payment of interest on, and the retirement of, the refunding bonds so sold. In lieu of selJing such refunding bonds and purchasing with the proceeds thereof the bonds to be refunded, the board of directors of the district may exchange refunding bonds at not less than par and accrued interest for the bonds so refunded. (c) Whenever such outstanding bonds shall be refunded. they shall be sur- rendered to the treasurer of the district, who shall proceed to cancel the same by indorsing on the face thereof the manner in which the refunding shall have been effected (whether by E!xchange or purchase, and the amount for which so purchased, if any) and by perforating through each bond and each coupon at- tached thereto, the word "canceled" together with the date of cancellation. He shall keep a record of such bonds so refunded. and shall make a report to the board of directors at l(~ast once a month. {d) AH moneys which shall remain in said "Refunding fund" after all out- standing bonds which were proposed to be refunded therefrom have been taken up and canceled, shall be paid into the sinking fund of such district and become a part thereof. [Amendment approved April 29, 1937; Stats. 1937, Chap. 140.] Sec. 5%. Each city, the area of which shall be a part of any district incor- porated hereunder, shal1 have a preferential right to purchase from t.he district for-rlistribution by such city, 01" any public utility therein empowered by said city for the purpose, for domestic and municipal uses within such city a portion of the water served by the district which shall, from time to time, bear the same ratio to all of the water supply of the district as the total accumulation of amounts paid by such city to the district on tax assessments and otherwise, excepting purchase of water, toward the capital eost and operating expense of the district's works shall bear to the total payments received by the district 1 I I I ~