§ 21-03-06 — Purposes and specific limitations of bond issues

Municipalities are empowered to borrow money, subject to the general limitations of
amounts prescribed by sections 21-03-04 and 21-03-05, and subject, in certain cases, to the
further limitations prescribed by the section, and to issue bonds thereof for the purposes
enumerated in the section. Such bonds may be issued:
1. By any county:
a. To provide county buildings and to acquire land for county purposes, but all
outstanding unpaid bonds for this purpose may not exceed in amount at any one
time five percent of the value of taxable property in such county.
b. To construct, enlarge, or repair, or aid in the construction, enlargement, or repair,
of bridges within or without the county, but all outstanding unpaid bonds for this
purpose may not exceed in amount at any one time one percent of the value of
taxable property in the county.
c. To provide funds for the original construction and for the improvement and
maintenance of highways, but all outstanding unpaid bonds for these purposes
may not exceed in amount at any one time four percent of the value of taxable
property in such county.
d. To provide funds for the construction of solid waste disposal facilities, for the
acquisition of real estate for that purpose, for facilities and equipment for the
collection of solid wastes, and for facilities and equipment to dispose of waste
products.

e. To provide money for the payment of any deficiency in the fund of any special
improvement district whenever the special assessment or taxes levied and
collected for the specific improvements are insufficient to pay the principal or
interest of any special improvement warrants or bonds issued for the
improvement and due and unpaid, but only to the extent of that deficiency.
f. To provide funds for the acquiring, laying out, equipping, and improving parks and
recreational facilities and to acquire land for these purposes.
g. To provide funds to purchase not to exceed two hundred forty acres
[97.12 hectares] of real estate and construct buildings and improvements for the
conduct of a county fair.
2. By any city:
a. For the erection, purchase, construction, enlargement, or repair of municipal or
public buildings for the following purposes: city halls, fire protection buildings,
waterworks buildings, police stations, city markets, public baths, hospitals,
libraries, museums, auditoriums, armories, gymnasiums, and music halls; and to
purchase and acquire sites for such buildings, and for the equipment and
furnishing thereof.
b. For the purchase of fire engines and other equipment and materials for fire
protection and for the purchase, construction, and installation of pumps,
watermains, reservoirs, and other necessary facilities for fire protection.
c. For the construction and extension of water plants or the purchase of existing
plants; the construction and improvement of watermains, sewers, and drains; or
for the joint construction and establishment of a water and sewer system; or for
the erection, planning, construction, and establishment of a sewage disposal
plant or system; or for the erection, construction, and enlargement of garbage
disposal plants and to purchase sites and grounds, either within or without the
limits of the city, for the disposal of sewage, garbage, and other refuse; or for the
leasing or purchase of lands, either within or without the limits of the city, for the
purpose of providing airports or landing fields or for the construction of buildings
thereon or the procuring of equipment therefor; and other like municipal
purposes.
d. To construct, acquire, enlarge, extend, or maintain any plant or equipment, or any
part of a plant or equipment, for the production, transmission, delivery or
furnishing of heat, light, or power, either directly or indirectly, to or for the public,
or to enlarge and extend such plants or equipment or any part thereof. This
subdivision may not be construed as an amendment to sections 40-33-01 to
40-33-09, nor to section 40-33-15.
e. To purchase, acquire, or establish any public utility and in cities having a
population of more than five thousand to purchase or acquire a public
transportation system. This subdivision may not be construed as impairing,
altering, or affecting the powers of the public service commission in any such
proceeding.
f. To provide for acquiring, laying out, and improving parks, parkways, park
buildings, public drives, boulevards, highways, streets, state highways, and
cemeteries, and to acquire land for these purposes.
g. To provide money for the payment of any deficiency in the fund of any special
improvement district whenever the special assessment or taxes levied and
collected for the specific improvements are then insufficient to pay the principal or
interest of any special improvement warrants issued for such improvement and
then due and unpaid, but only to the extent of such deficiency.
h. For the purchase of automobiles, trucks, tractors, flushers, sprinklers, street
sweepers, graders, rollers, loaders, plows, conveyors and other machinery,
equipment and materials for the cleaning, flushing, and sweeping of any street,
highway, avenue, alley, or public place within the city, the removal of snow and
ice therefrom, and other like municipal purposes.

i. For the purchase of trucks, garbage collectors, and other vehicles, equipment
and materials for the collection, removal, and disposal of garbage, rubbish,
ashes, refuse, and other wastes within the city.
j. To provide for the acquiring and constructing of parking lots and facilities for
motor vehicle parking.
k. To provide funds for the erection, purchase, construction, enlargement, or repair
of bridges, and to purchase and acquire necessary real estate, sites, or
easements for such bridges.
l. To provide funds for all works in connection with flood control and the necessary
land or easements for such flood control works.
m. To provide required matching funds for a capital construction project at a state
institution of higher education located within the city for which an appropriation
has been made by the legislative assembly. Bonds issued under this subdivision
are deemed to be issued for corporation purposes under subsection 5 of section
40-05-01.
3. Repealed by S.L. 1967, ch. 323, § 285.
4. By any public school district, or the school district of the city of Fargo, to purchase,
erect, enlarge, and improve school buildings and teacherages, to acquire sites therefor
and for playgrounds, to furnish and equip the same with heat, light, and ventilation or
other necessary apparatus, to pay advance rentals to the state school construction
fund, and also to purchase schoolbus equipment which must meet the standards set
up by the state superintendent of public instruction and the director of the department
of transportation.
4.1. By any school district having a community or junior college or off-campus educational
center as provided in chapter 15-18 which has an enrollment of one thousand or more
students, upon motion of the governing body, for capital construction purposes,
including the construction and equipping of new buildings or repairing or renovating
and equipping existing buildings. The governing body may levy a tax not exceeding
two mills on the dollar of the taxable valuation of the school district for the purpose of
paying the principal and interest on bonds issued pursuant to this subsection. The mill
levy authorized by this subsection is in addition to any mill levy limitations provided by
law. The total principal amount of bonds issued pursuant to this subsection may not
exceed seven hundred thousand dollars, and any indebtedness incurred by a school
district must be within debt limitations established by law. Bonds issued under this
subsection must never become a general obligation of this state.
5. By any township:
a. For the erection of a township hall and the purchase of a site therefor; and
b. For the construction of roads and bridges, but all outstanding unpaid bonds for
road and bridge purposes may not exceed in amount at any one time one and
one-half percent of the value of the taxable property in such township.
6. By any park district which constitutes a distinct municipality, to provide for acquiring,
laying out, and improving parks, parkways, boulevards, and pleasure drives, and to
acquire land for these purposes, but such indebtedness may not at any time exceed
one percent of the value of the taxable property in such park district.
7. By any municipality as herein defined:
a. For the purpose of paying any final judgment obtained against the municipality
within the state of North Dakota in case the governing body does not deem it
advisable to pay such judgment out of current revenues. In case the bonds
authorized by this subsection cannot be sold in accordance with this chapter, they
may be issued to the judgment creditor in payment of such judgment.
b. To provide necessary funds for the payment of the principal and interest of bonds
of such municipality, due or about to become due, for the payment of which the
municipality has not sufficient funds, but only to the extent of such deficit; or to
refund outstanding bonds of the municipality which are called for redemption and
prepayment in accordance with their terms, or by the consent of the holders
thereof, within six months from the date of the refunding bonds, when in the

judgment of the governing body the best interests of the municipality will be
served thereby, through the reduction of interest cost or the extension of
maturities.
c. To refund outstanding bonds not yet due or to become due or subject to
redemption and prepayment within six months, when in the judgment of the
governing body the best interests of the municipality will be served thereby,
through the reduction of debt service costs or the extension or adjustment of
maturities in relation to the resources available for their payment. The proceeds
of the refunding bonds, including any premium and accrued interest, must be
deposited in escrow with a suitable bank or trust company, having its principal
place of business within or without the state, and must be invested in such
amount and in securities maturing on such dates and bearing interest at such
rates as are required to provide funds sufficient to pay when due the interest to
accrue on each bond refunded to its maturity or, if it is prepayable and called for
redemption, to an earlier prior date upon which it may be called for redemption,
and to pay and redeem the principal amount of each such bond at maturity or, if
prepayable and called for redemption, at the earlier redemption date, and pay any
premium required for redemption on such date; or in the case of a crossover
refunding, must be invested in securities irrevocably appropriated to the payment
of principal and interest on the refunding bonds until the date the proceeds are
applied to the payment or redemption of the bonds to be refunded. The governing
body's resolution authorizing the refunding bonds shall irrevocably appropriate for
these purposes the escrow fund and all investments thereof, which must be held
in safekeeping by the escrow agent, and all income therefrom, and may provide
for the call for redemption of all prepayable bonds in accordance with their terms.
The securities to be purchased with the escrow fund must be limited to general
obligations of the United States, securities whose principal and interest payments
are guaranteed by the United States, and securities issued by the following
United States government agencies: banks for cooperatives, federal home loan
banks, federal intermediate credit banks, federal land banks, and the federal
national mortgage association. Such securities must be purchased
simultaneously with the delivery of the refunding bonds. Moneys on hand in the
sinking fund maintained for the payment of the outstanding bonds, and not
immediately needed for the payment of interest or principal due, or other legally
available funds of the municipality may likewise be deposited in the escrow fund
and invested in the same manner as the proceeds of the refunding bonds, to the
extent consistent with the provisions of resolutions authorizing the outstanding
bonds.
8. By any recreation service district:
a. For the construction and extension of water plants or the purchase of existing
plants; the construction and improvement of watermains, sewers, and drains; or
for the joint construction and establishment of a water and sewer system; or for
the erection, planning, construction, and establishment of a sewage disposal
plant or system; or for the erection, construction, and enlargement of garbage
disposal plants and to purchase sites and grounds, either within or without the
limits of the recreation service district, for the disposal of sewage, garbage, and
other refuse; and other like recreation service district purposes.
b. To provide for acquiring, laying out, and improving parks, parkways, park
buildings, public drives, boulevards, highways, streets, state highways, and to
acquire land for these purposes.
c. To provide money for the payment of any deficiency in the fund of any special
improvement district whenever the special assessment or taxes levied and
collected for the specific improvements are then insufficient to pay the principal or
interest of any special improvement warrants issued for such improvement and
then due and unpaid, but only to the extent of such deficiency.

d. For the purchase of trucks, garbage collectors, and other vehicles, equipment,
and materials for the collection, removal, and disposal of garbage, rubbish,
ashes, refuse, and other wastes within the recreation service district.
e. For the purpose of providing services described in section 11-28.2-04.
f. For the purpose of dredging any waters or waterways within or contiguous to the
recreation service district.
9. By any rural fire protection district for the purchase of such firefighting equipment,
ambulances, or other emergency vehicles, or the acquisition, construction, and
equipping of such real property and improvements thereto, as is necessary and proper
to carry out the general fire protection program of the district.