OCR Text |
Show In the event that second party shall fail to make any of the payments above specified to first party upon the dates when the same fall due, then said Bank shall deliver to said first party as security as aforesaid the same amount of bonds that second party would be entitled to receive if it made such payment. That is to say, if second party fails to make the payment of $4000.00 when due said Bank on demand thereafter, shall deliver to first party $26,000.00 of said bonds; and if said second party fails to make either of the payments of $10,000.00 when due, then said Bank shall on demand thereafter deliver to first party $65,000.00 of said bonds upon each failure; and if said second party fails to make the payment of $13,000.00 when due, then said Bank shall on demand thereafter deliver to first party $94,000.00 of said bonds. All such bonds that may, as above specified, be delivered to first party by said Bank upon non-payment of such respective installments shall be held by first party as a pledge for the payment of such installments and first party may thereupon sell and dispose of such installments of said bonds in the manner provided by law, to pay such installment payment or may hold all of them until the last installment payment is due, and then proceed and dispose of all such bonds so delivered to him in the manner provided by law for the disposition of pledged property. Provided that at any time before maturity thereof second party may make a part payment upon any of said installments, and that upon producing to and filing with said Bank the receipt of first party for such part payment, said Bank shall deliver to said second party such proportionate amount of the bonds which second party would be entitled to receive upon making the whole of said payment |
Source |
Original book: [State of Arizona, complainant v. State of California, Palo Verde Irrigation District, Coachella Valley County Water District, Metropolitan Water District of Southern California, City of Los Angeles, California, City of San Diego, California, and County of San Diego, California, defendants, United States of America, State of Nevada, State of New Mexico, State of Utah, interveners] : California exhibits. |