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- 11 States, and for the generation of electrical energy as a means of making the project herein authorized a self-supporting and financially solvent undertaking, the Secretary of the Interior is hereby authorized and directed to construct, operate, and maintain a dam and incidental works in the main stream of the Colorado River at Black Canyon or Boulder Canyon adequate to create a storage reservoir of a capacity of not less than twenty-six million acre-feet of water and a main canal and appurtenant structures located entirely within the United States connecting the Laguna Dam or other suitably diversion works to be located and constructed by the said Secretary on said river as a part of said canal with the Imperial and Coachella Valleys in California; also to construct and equip, operate and maintain at or near said dam a complete plant and incidental structures suitable for the fullest economic development of electrical energy from the water discharged from said reservoir; and to acquire by proceedings in eminent domain, or otherwise, all lands, rights of way, and other property necessary for said purposes. Sec. 2. That the Secretary of the Treasury is hereby authorized to borrow on the credit of the United States from time to time as the proceeds may be required to defray the expenditures authorized by this act (such proceeds when received to be deposited in a subfund of the reclamation fund established under the reclamation law and to be designated "Colorado River Dam Fund" and to be used only for the purpose of meeting such expenditures) the sum of $125,000,000, or so much thereof as may be necessary, and to prepare and issue therefor coupon or registered bonds of the United States, in such form and denomination as he may determine, redeemable in gold coin at the pleasure of the United States after fifteen years from the date of their issue and payable in not to exceed fifty years from such date, and bearing interest at a rate not exceeding 4 per centum per annum, payable semiannually in gold coin: Provided, however, That the Secretary of the Treasury, in his discretion, may, at the request of the Secretary of the Interior, issue said bonds in series maturing in successive years commencing not earlier than fifteen years from the date of their issue, but all maturing in not to exceed fifty years from such date. Sec. 3. That the sum of $105,000,000 is hereby authorized to be appropriated from said subfund from time to time upon estimates of the Secretary of the Interior for the construction of the works herein authorized; and the Secretary of the Treasury is hereby authorized to pay out of the unappropriated balance in said subfund interest on said bonds during the period of the construction of the said works and until revenue therefrom for such purpose is received. Revenues from said project shall also be deposited in said sub-fund and are hereby reappropriated for operation and maintenance purposes, and payment of interest upon and amortization of said bonds. Sec. 4. (a) No work shall be begun and no moneys expended on or in connection with the works or structures provided for in this act, and no water rights shall be initiated hereunder, until the respective legislatures of at least six of the signatory States mentioned in section 12 hereof shall have approved the Colorado River Compact mentioned in said section 12, and shall have consented to a waiver of the provision of the first paragraph of article 11 of said compact making the same binding and obligatory when it shall have been approved by the legislatures of each of the seven signatory States, and until the President. by public proclamation, shall have declared that the said compact has been approved by and become binding and obligatory upon at least six of the signatory States. (b) Before any bonds shall be issued or sold, or any construction work done or contracted for, the said Secretary shall provide for revenue hereunder, by contract or otherwise, adequate, in his judgment, to insure payment of operation and maintenance expense of the works herein authorized to be constructed, interest on bonds (except interest during construction), and amortize the bonds within fifty years. Sec. 5. That the said Secretary is hereby authorized, under such general regulations as he may prescribe, to contract for the storage of water in said reservoir and for the delivery thereof at such points on the river and on said canal as may be agreed upon, for irrigation and domestic uses, and delivery at the switchboard to municipal corporations, political subdivisions, and private corporations of electrical energy generated at said dam. upon charges that will provide revenue which, in addition to other revenues accruing to the said subfund under the reclamation law or hereunder, will cover operation and maintenance expense of works constructed hereunder, interest on bonds
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