§ 38-14.3-07 — Reinsurance contracts - Revenue bonds - Guarantees

North Dakota § 38-14.3-07

• Jurisdiction: North Dakota
• Title 38: Mining and Gas and Oil Production
• Ch. 38-14.3: Surface Mining and Reclamation Bond Fund

Text

The industrial commission shall do all things necessary to preserve the fund and ensure the
ability of the fund to pay claims. The industrial commission is granted all powers necessary to
effectuate the purposes of this chapter, including but not limited to the power to:
1. Contract for reinsurance of any risk against which a bond is issued under this chapter.
A contract for reinsurance may be entered into without public bids and must be
approved by the insurance commissioner.
2. Issue evidences of indebtedness. The principal of, and interest on, evidences of
indebtedness may be paid only from the fund. The evidences of indebtedness are not
a debt of the state of North Dakota or of any officer or agent of the state within the
meaning of any statutory or constitutional provision and shall contain a statement to
that effect on their face. The evidences of indebtedness may be sold at public or
private sale and must contain the terms and provisions set by the industrial
commission. Any state department or public fund may invest its funds in the purchase
of the evidences of indebtedness. The evidences of indebtedness are not subject to
taxation by the state or by any political subdivision of the state.
3. Require, before issuing a bond, that a permittee guarantee and indemnify the fund
against any loss and secure the guarantee and indemnity by the pledge or posting of
real or personal property under terms and conditions set by the industrial commission.

The industrial commission may not require the pledge or posting of property if the
fund's reserves are sufficient to ensure the payment of all claims against it. The liability
of a permittee under a guarantee or indemnity agreement under this chapter is limited
to the payment of any claims against the bond issued for the permittee.