OCR Text |
Show -18- exceeding in the aggregate at its par value ($3,750,000) Three Million seven hundred and fifty thousand dollars. Said scrip shall be receivable by the Company at its face value for seventy five per cent (75%) of the price of land and water rights offered for sale by the Company, from time to time, at the regular selling rates to be fixed by the Company, from time to time, upon the Company receiving the remaining twenty five per cent of such price in cash. The scrip or any part of it shall be redeemable by the Company for cancellation, at its option, at any time or from time to time by payment of its face value in cash. The Company shall reserve for the purchase and redemption of the issued scrip, seventy five per cent (75%) of the net price received from the sales of land and water rights, not sold for scrip, so long as any of such scrip is issued and outstanding. Such fund may be used by the Company for the purchase and redemption of scrip, upon agreement with the holder for less than the par value, and such fund shall be reserved, and invested in such manner, and used and applied in such manner, not inconsistent with the contract contained in the scrip certificate, to such redemption as the Board of Directors may hereafter direct. Such scrip may contain such other limitations or contracts as the Board may direct. Such issue of the scrip and the contract with the scrip holders shall not interfere with nor prevent the making of loans by the Company, nor the use of such borrowed money by the Company for its own benefit, nor the pledging or mortgaging of the Company's land, water rights or assets to secure such loans. Any mortgage or deed of trust of the Company's lands or water rights shall |
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. |