§ 2-06-10 — Bonds and other obligations

1. An authority may borrow money and issue bonds for any of its corporate purposes,
including refunding bonds, in the form and upon the terms as it chooses, payable out
of any revenues of the authority, including grants or contributions from the federal
government or other sources. The bonds may be sold at not less than ninety-eight
percent of par plus the interest accrued on the bonds to the date of the delivery.
2. Bond issues sold at private sale must bear interest at a rate or rates and be sold at a
price resulting in an average net interest cost not exceeding twelve percent per
annum. There is no interest rate ceiling on those issues sold at public sale or to the
state or any of its agencies or instrumentalities.
3. Any bonds issued under this chapter by an authority, or by a governing body
exercising the powers of an authority, are payable, as to principal and interest, solely
from revenues of an airport and must so state on their face, but if any issue of bonds
constitutes an indebtedness within the meaning of any constitutional or statutory debt
limitation or restriction, each bond of the issue is, subject to the requirements of
subsection 9, an equally valid and binding special obligation of the authority or
municipality, in accordance with its terms, in an amount proportionate to the total
amount of the issue which is within the limitation or restriction. Neither the

commissioners of an authority nor the governing body of a municipality nor any person
executing the bonds is liable personally by reason of the issuance, except to the extent
the bonds, if constituting an indebtedness, exceed any applicable limitation or
restriction.
4. If any commissioners or officers of an authority or municipality whose signatures
appear on any bonds or coupons ceases to be a commissioner or officer after
authorization but before the delivery of the bonds, the signature of the commissioner
or official remains valid and sufficient for all purposes, the same as if the commissioner
or officer had remained in office until delivery. Any law to the contrary notwithstanding,
any bonds issued under this chapter are fully negotiable.
5. Any bond reciting in substance that it has been issued by the authority or municipality
under this chapter and for a purpose authorized by this chapter must be deemed, in
any suit, action, or proceeding involving the validity or enforceability of the bond or the
security for the bond, to have been issued under this chapter and for that purpose.
6. Bonds issued by an authority or municipality under this chapter are declared to be
issued for an essential public and governmental purpose and, together with interest on
the bonds, and income from the bonds, are exempt from all taxes.
7. For the security of any such bonds, the authority or municipality may by resolution
enter any covenant, agreement, or indenture authorized to be made as security for
revenue bonds issued under chapter 40-35. The sums required to pay principal and
interest and to create and maintain a reserve for the bonds may be made payable from
any revenues referred to in this chapter, before the payment of current costs of
operation and maintenance of the facilities.
8. The governing body of a municipality that issues revenue bonds under this chapter
shall levy a general tax upon all taxable property in the municipality for the payment of
any deficiency in airport authority funds to pay principal or interest due for the bonds
before August 1, 2015, and made payable from revenues of an airport authority. The
governing body of the municipality may levy a general tax upon all taxable property in
the municipality for the payment of any deficiency that is likely to occur within one year
in airport authority funds to pay principal or interest due for revenue bonds issued
under this chapter before August 1, 2015, and made payable from revenues of an
airport authority. The taxes levied by the municipality under this subsection are not
subject to any limitation of rate or amount applicable to other municipal taxes.
9. Revenue bonds issued by an airport authority after July 31, 2015, must include the
commitment of the municipality for the payment of any deficiency in airport authority
funds to pay principal or interest due for revenue bonds as provided in this subsection.
The governing body of the municipality shall levy a general tax upon all taxable
property in the municipality for the payment of any deficiency in airport authority funds
to pay principal or interest due for revenue bonds issued under this chapter after
July 31, 2015, and made payable from revenues of an airport authority. The governing
body of the municipality may levy a general tax upon all taxable property in the
municipality for the payment of any deficiency that is likely to occur within one year in
airport authority funds to pay principal or interest due for revenue bonds issued under
this chapter after July 31, 2015, and made payable from revenues of an airport
authority. The taxes levied by the municipality under this subsection are not subject to
any limitation of rate or amount applicable to other municipal taxes. The commitment
of the municipality and the issuance of the bonds must be approved by a majority vote
of the governing body of each municipality involved or, upon placement of the question
on the ballot at a primary, general, or special election, by approval of a majority of the
qualified electors of the municipalities voting on the question.