§ 40-35-13 — Covenants that may be inserted in ordinance or resolution authorizing bonds

North Dakota § 40-35-13

• Jurisdiction: North Dakota
• Title 40: Municipal Government
• Ch. 40-35: Revenue Bond Law

Text

bonds.
Any ordinance or resolution authorizing the issuance of bonds under this chapter to finance,
in whole or in part, the acquisition, construction, reconstruction, improvement, betterment, or
extension of an undertaking may contain covenants, notwithstanding that such covenants may
limit the exercise of powers conferred by this chapter, as to:
1. The rates, fees, tolls, or charges to be charged for the services, facilities, and
commodities of said undertaking.
2. The use and disposition of the revenues of said undertaking.
3. The creation and maintenance of reserves or sinking funds and the regulation, use,
and disposition thereof.
4. The purpose or purposes to which the proceeds of the sale of said bonds may be
applied and the use and disposition of such proceeds.
5. The events of default and the rights and liabilities arising thereon and the terms and
conditions upon which the holders of bonds issued under this chapter may bring any
suit or action on said bonds or on the coupons thereof.
6. The payment by the municipality to the account of said undertaking of a fair and
reasonable amount for the services, facilities, or commodities furnished said
municipality or any of its departments by said undertaking.
7. The issuance of other or additional bonds or instruments payable from or constituting a
charge against the revenue of such undertaking.
8. The insurance to be carried upon the undertaking and the use and disposition of
insurance moneys.
9. The keeping of books of account and the inspection and audit thereof.
10. The terms and conditions upon which any or all of the bonds shall become or may be
declared due before maturity and the terms and conditions upon which such
declaration and its consequences may be waived.
11. The rights, liabilities, powers, and duties arising upon the breach by the municipality of
any covenants, conditions, or obligations.
12. The vesting in a trustee or trustees of the right to enforce any covenants made to
secure, to pay, or in relation to, the bonds, the powers and duties of such trustee or
trustees, and the limitation of liabilities thereof.
13. The terms and conditions upon which the holders of the bonds, or the holders of any
proportion or percentage of them, may enforce any covenants made under this
chapter or any duties imposed thereby.
14. A procedure by which the terms of any ordinance or resolution authorizing bonds or of
any other contract with bondholders, including, but not limited to, an indenture of trust
or similar instrument, may be amended or abrogated, and the amount of bonds the
holders of which must consent thereto, and the manner in which such consent may be
given.

15. The subordination of the security of any bonds issued hereunder and the payment of
principal and interest thereon, to the extent deemed feasible and desirable by the
governing body, to other bonds or obligations of the municipality issued to finance the
undertaking or that may be outstanding when the bonds thus subordinated are issued
and delivered.
Nothing in this section or in any other section of this chapter, however, shall authorize any
municipality to do anything in any manner or for any purpose which would result in the creation
or incurring of a debt or indebtedness or the issuance of any instrument, which would constitute
a bond or debt within the meaning of any provision, limitation, or restriction of the Constitution of
North Dakota relating to the creation or incurring of a debt or indebtedness or the issuance of an
instrument constituting a bond or a debt.