§ 23-11-24 — Provisions of bonds, trust indentures, and mortgages

North Dakota § 23-11-24

• Jurisdiction: North Dakota
• Title 23: Health and Safety
• Ch. 23-11: Housing Authorities Law

Text

In connection with the issuance of bonds or the incurring of obligations under leases and in
order to secure the payment of the bonds or obligations, an authority, in addition to the
authority's other powers, has power:
1. To pledge all or any part of the authority's gross or net rents, fees, or revenues to
which the authority's right then exists or thereafter may come into existence.
2. To mortgage all or any part of the authority's property then owned or thereafter
acquired.

3. To covenant against pledging all or any part of the authority's rents, fees, and
revenues, or against mortgaging all or any part of the authority's property, to which the
authority's right or title then exists or thereafter may come into existence, or against
permitting or suffering any lien on any revenues or property.
4. To covenant with respect to limitations on the authority's right to sell, lease, or
otherwise dispose of any housing projects or any part of a housing project.
5. To covenant as to what other or additional debts or obligations may be incurred by the
authority.
6. To covenant as to the bonds to be issued and as to the issuance of bonds in escrow or
otherwise and as to the use and disposition of the proceeds of the bonds.
7. To provide for the replacement of lost, destroyed, or mutilated bonds.
8. To covenant against extending the time for the payment of the authority's bonds or
interest on the bonds.
9. To redeem the bonds, to covenant for the bonds' redemption, and to provide the terms
and conditions of redemption.
10. To covenant, subject to the limitations contained in this chapter, as to the rents and
fees to be charged in the operation of a housing project or projects, the amount to be
raised each year or other period of time by rents, fees, and other revenues, and as to
the use and disposition to be made of the same.
11. To create, or to authorize the creation of, special funds for moneys held for
construction or operating costs, debt service, reserves, or other purposes, and to
covenant as to the use and disposition of the moneys held in these funds.
12. To prescribe the procedure, if any, by which the terms of any contract with bondholders
may be amended or abrogated, the amount of bonds the holders of which must
consent, and the manner in which consent may be given.
13. To covenant as to the use of any or all of the authority's property.
14. To covenant as to the maintenance of the authority's property, the replacement of
property, the insurance to be carried on property, and the use and disposition of
insurance moneys.
15. To covenant as to the rights, liabilities, powers, and duties arising upon the breach by
the authority of any covenant, condition, or obligation.
16. To covenant and prescribe as to events of default and terms and conditions upon
which any or all of the authority's bonds or obligations shall become, or may be
declared, due before maturity, and as to the terms and conditions upon which the
declaration and the declaration's consequences may be waived.
17. To vest in a trustee or trustees or in the holders of bonds, or any proportion of trustees
or holders, the right to enforce the payment of the bonds or any covenants securing or
relating to the bonds.
18. To vest in a trustee or trustees the right, in the event of a default by the authority, to
take possession and to use, operate, and manage any housing project or part of the
housing project, to collect the rents and revenues arising from the housing project, and
to dispose of these moneys in accordance with the agreement of the authority with the
trustee.
19. To provide for the powers and duties of a trustee or trustees and to limit the liabilities of
the trustee.
20. To provide the terms and conditions upon which the trustee or trustees or the holders
of bonds, or any proportion of trustees or holders, may enforce any covenant or rights
securing or relating to the bonds.
21. To exercise all or any part or combination of the powers granted in this section.
22. To make covenants in addition to the covenants expressly authorized of like or
different character.
23. To make covenants and to do any acts and things as may be necessary, convenient,
or desirable in order to secure the authority's bonds, or, in the absolute discretion of
the authority, as will tend to make the bonds more marketable notwithstanding that the
covenants, acts, or things are not enumerated, including:

a. To the payment of the principal of and interest on bond obligations, when due,
there may be pledged as a first charge and lien the gross revenues of the
housing project financed in whole or in part by the obligations, and the governing
city or county may covenant to provide additional funds for the benefit of that
housing project to the extent that the gross revenues in excess of those debt
service requirements are not also sufficient from time to time to pay the
reasonable operating and maintenance expenses of that housing project.
b. The governing body of an authority may pledge the general obligation of the city
or county for which the authority was created as additional security for bonds
provided that the authority finds that the pledged revenues will equal or exceed
one hundred ten percent of the principal and interest due on the bonds for each
year, the maturity of the bonds does not exceed thirty-five years, and the principal
amount of the issue and the general obligation pledge are approved by the
governing body of the city or county in which the housing project is located and
whose general obligation is pledged. A public hearing must be held on issuance
of the obligations and the pledge of the general obligation by the city or county in
which the housing project is located. The hearing must be held at least fifteen
days, but not more than one hundred twenty days, before the sale of the
obligations.