§ 15-55-03 — Bonds are special obligations and board may insert special provisions in bonds

North Dakota § 15-55-03

• Jurisdiction: North Dakota
• Title 15: Education
• Ch. 15-55: Construction of Revenue-Producing Buildings

Text

bonds.
The bonds issued under the provisions of this chapter may not be an indebtedness of the
state of North Dakota nor of the institution for which they are issued nor of the state board of
higher education thereof, nor of the individual members, officers or agents thereof nor may any
building or other campus improvement or the land upon which it is situated, or any part thereof
be security for or be levied upon or sold for the payment of said bonds, but the said bonds must
be special obligations payable solely from the revenues to be derived from the operation of the
building or other campus improvement, and the board is authorized and directed to pledge all or
any part of such revenues to the payment of principal and interest on the bonds. In order to
secure the prompt payment of such principal and interest and the proper application of the
revenues pledged thereto, the board is authorized by appropriate provisions in the resolution or
resolutions authorizing the bonds:

1. To covenant as to the use and disposition of the proceeds of the sale of such bonds;
2. To covenant as to the operation of the building or other campus improvement and the
collection and disposition of the revenues derived from such operation;
3. To covenant as to the rights, liabilities, powers, and duties arising from the breach of
any covenant or agreement into which it may enter in authorizing and issuing the
bonds;
4. To covenant and agree to carry such insurance on the building or other campus
improvement, and the use and occupancy thereof as may be considered desirable
and, in its discretion, to provide that the cost of such insurance shall be considered as
part of the expense of operating the building or other campus improvement;
5. To vest in a trustee or trustees for the bondholders the right to receive all or any part of
the income and revenues pledged and assigned to or for the benefit of the holder or
holders of bonds issued hereunder and to hold, apply, and dispose of the same, and
the right to enforce any covenant made to secure the bonds and to execute and
deliver a trust agreement or agreements which may set forth the powers and duties
and the remedies available to such trustee or trustees and may limit the liabilities
thereof and prescribe the terms and conditions upon which such trustee or trustees or
the holder or holders of the bonds in any specified amount or percentage may exercise
such rights and enforce any or all such covenants and resort to such remedies as may
be appropriate;
6. To fix rents, charges, and fees to be imposed in connection with and for the use of the
building or other campus improvement and the facilities supplied thereby, which rents,
charges, and fees shall be considered to be income and revenues derived from the
operation of the building or campus improvement, and are hereby expressly required
to be fully sufficient to assure the prompt payment of principal and interest on the
bonds as each becomes due, and to make and enforce such rules and regulations
with reference to the use of the building or campus improvement, and with reference to
requiring any class or classes of students to use the buildings or other campus
improvements as it may deem desirable for the welfare of the institutions and its
students or for the accomplishments of the purposes of this chapter;
7. To covenant to maintain a maximum percentage of occupancy of the building or other
campus improvement;
8. To covenant against the issuance of any other obligations payable from the revenues
to be derived from the building or other campus improvement; and
9. To make covenants other than and in addition to those herein expressly mentioned of
such character as may be considered necessary or advisable to affect the purposes of
this chapter.
All such agreements and covenants entered into by the board are enforceable by appropriate
action or suit at law or in equity, which may be brought by any holder or holders of bonds issued
hereunder.