§ 15-55-05 — Deposit and use of proceeds of bonds - Authorizing issuing of warrants - Contracts

Contracts.
The proceeds from the sale of the bonds herein authorized must be deposited to the credit
of the board and kept in a separate fund in the state treasury, in the Bank of North Dakota or in
a bank which is a duly designated depository for state funds and is a member of the federal
deposit insurance corporation. Provided, that when such funds are deposited in a bank other
than the Bank of North Dakota or a bank which is not a duly designated depository for state
funds, such bank must be required to pledge, as security for such deposit, securities in an
amount equal to the sum by which such deposit exceeds the amount of federal deposit
insurance corporation insurance. Securities which are eligible for such pledge are notes or
bonds issued by the United States government, its agencies or instrumentalities, all bonds and
notes guaranteed by the United States government, federal land bank bonds, or bonds issued
by any state of the United States. In lieu of the deposit of such securities, a surety bond may be
accepted from the bank designated as a depository in a sum equal to the amount of funds such
bank may receive in excess of the amount guaranteed by the federal deposit insurance
corporation. Such proceeds must be used solely for the purpose for which the bonds are
authorized except that the board may invest such funds in direct obligations of, or obligations
the principal of and interest on which are guaranteed by, the United States of America, or
obligations of the state of North Dakota or of any municipality as defined in section 21-03-01
prior to or during building or other campus improvement construction except to the extent such
investment is prohibited or restricted by any covenant made with or for the benefit of
bondholders. The board is authorized to make all contracts and to cause the execution of all
instruments which in its discretion may be deemed necessary or advisable to provide for the
construction, furnishing, and equipment of the building or other campus improvement or for the
sale of the bonds or for interim financing deemed necessary or advisable pending the sale of
the bonds and pledging the proceeds of the bonds.