§ 40-33.2-08 — City powers

North Dakota § 40-33.2-08

• Jurisdiction: North Dakota
• Title 40: Municipal Government
• Ch. 40-33.2: Municipal Power Agencies

Text

1. A city may by resolution of its governing body exercise any of the powers granted in
this chapter to a municipal power agency, upon fulfillment of the conditions provided in
this chapter for the exercise of the power, but without complying with the terms of
section 40-33.2-03 relating to incorporation, and notwithstanding any provision of any
city charter or any other law denying, limiting, or placing conditions upon the exercise
of the power. Nothing in this section shall be construed to repeal any charter provision
or law requiring an election or other condition precedent to the establishment after
January 1, 1977, of a city electric energy distribution system.

2. Every resolution adopted in accordance with subsection 1 shall be published in the
official newspaper of the city. No action may be brought and no defense may be
interposed in an action brought more than thirty days after publication of the resolution,
placing at issue the validity of any provision of the resolution or the power of the city to
make any contract or to issue any bond, note, or other obligation authorized thereby.
3. Nothing in this chapter authorizes any city to issue general obligation bonds for any
purposes specified in this chapter without approval of its electors or performance of
other procedural conditions as may be required by its charter or the laws of this state.
Notwithstanding any limitation contained in section 40-05-05, a city may, by resolution
of its governing body and without approval of the electors or performance of other
conditions provided in any charter or other law, enter into contracts with a municipal
power agency or any other person for the purchase, sale, exchange, or transmission
of electric energy and other services, on the terms and for the period of time as the
resolution may provide. A city may appropriate and use tax and other revenues
received to make payments due or to comply with covenants to be performed under
any contract made by the city pursuant to this section or when acting as a municipal
power agency, or any contract made by the city with a municipal power agency, as
contemplated by this chapter, subject to the provisions of its charter and the laws of
this state regarding budget and payment procedures and annual tax levy limitations.
4. Any contract made by a city pursuant to this section or when acting as a municipal
power agency, or any contract made by a city with a municipal power agency, as
contemplated by this chapter, may provide for the purchase of all or a portion of the
capacity or output of one or more designated projects and may provide that the city
contracting shall be obligated to make the payments required by the contract whether
or not a project is completed, operable, or operating, and notwithstanding the
suspension, interruption, interference, reduction, or curtailment of the output of a
project or the power and energy contracted for. The contract may also provide that
payments under the contract shall not be subject to any reduction, whether by offset or
otherwise. The contract need not be conditioned upon the performance or
nonperformance by any other party to the contract, or to any similar contract for the
same project, under the contract or under any other instrument. The contract may also
provide, in the event of default by any party to the contract or to any similar contract for
the same project in the performance of its obligations thereunder, for other parties to
the contract or any similar contract for the project to succeed to the rights and interests
and assume the obligations of the defaulting party, pro rata or otherwise, as may be
agreed upon in the contract.
5. Any contract made by a city pursuant to this section or when acting as a municipal
power agency, or any contract made by a city with a municipal power agency, as
contemplated by this chapter, may provide that payments by a city under the contract
shall be made solely from, and shall be secured by a pledge of and lien upon, the
revenues derived by the city from the ownership and operation of the electric system
of the city, and that payments shall be made as an operating expense of the electric
system. The contract may provide that no obligation under the contract shall constitute
a legal or equitable pledge, charge, lien, or encumbrance upon any property of the city
or upon any of its income, receipts, or revenues, except the revenues of its electric
system, and that neither the faith and credit nor the taxing power of the city are, or
shall be, pledged for the payment of any obligation under the contract. The contract
may provide that the city shall be obligated to fix, charge, and collect rents, rates, fees,
and charges for the commodities or services sold, furnished, or supplied through its
electric system sufficient to provide revenues adequate to meet its obligations under
the contract and to pay any and all other amounts payable from or constituting a
charge and lien upon revenues, including amounts sufficient to pay the principal of and
interest on bonds of the city heretofore or hereafter issued for purposes related to its
electric system. The municipal power agency may, either at law or in equity, by suit,
action, mandamus, or other proceedings, enforce and compel the performance of any
or all covenants or obligations of the city under the contract to be performed by the city

or any officer thereof, including the fixing, charging, and collecting of rents, rates, fees,
and other charges. Any pledge of revenues made by a city pursuant to this subsection
shall be valid and binding from the date the pledge is made. The revenues pledged
shall immediately be subject to the lien of the pledge without physical delivery or
further act, and the lien of the pledge shall be valid and binding as against all parties
having claims of any kind in tort, contract, or otherwise against the city without regard
to whether the parties have notice. Neither the contract, pledge agreement, or trust
agreement by which a pledge is created nor any financing statement, continuation
statement, or other instrument relating thereto need be filed or recorded in any
manner.