§ 40-36-08 — Provisions that may be inserted in resolution authorizing issuance of refunding bonds

North Dakota § 40-36-08

• Jurisdiction: North Dakota
• Title 40: Municipal Government
• Ch. 40-36: Revenue Bond Refinancing Law

Text

refunding bonds.
The governing body of any municipality, in addition to the other powers conferred by this
chapter, may insert in any resolution authorizing the issuance of refunding bonds, such
resolution to be a part of the contract with the holders of the refunding bonds, provisions relating
to:
1. Limitations on the purpose to which the proceeds of the sale of any notes, bonds, or
other obligations thereafter to be issued to finance the improving of the enterprise may
be applied;
2. Limitations on the issuance and on the lien of other notes, bonds, or other obligations
thereafter to be issued and secured by or made payable from the revenues of such
enterprise to finance the improving of the enterprise;

3. Limitations on the right of the municipality or its governing body to restrict and regulate
the use of the enterprise;
4. The amount and kind of insurance to be maintained on the enterprise and the use and
disposition of insurance moneys;
5. The pledging all or any part of the revenues of the enterprise to which its right then
exists or the right to which thereafter may come into existence;
6. The covenanting against pledging all or any part of the revenues of the enterprise to
which its right then exists or the right to which thereafter may come into existence;
7. Events of default and the terms and conditions upon which any or all of the refunding
bonds shall become or may be declared due before maturity and as to the terms and
conditions upon which such declaration and its consequences may be waived;
8. The rights, liabilities, powers, and duties arising upon the breach by the municipality of
any covenants, conditions, or obligations;
9. The vesting in a trustee or trustees of the right to enforce any covenants made to
secure, to pay, or in relation to the refunding bonds, the powers and duties of such
trustee or trustees, and the limitation of liabilities thereof;
10. The terms and conditions upon which the holders of the refunding bonds, or of any
proportion or percentage of them, may enforce any covenants made under this
chapter or any duties imposed thereby;
11. A procedure by which the terms of any resolution authorizing refunding bonds or of
any other contract with bondholders, including an indenture of trust or similar
instrument, may be amended or abrogated and the amount of refunding bonds the
holders of which must consent thereto, and the manner in which such consent may be
given;
12. The execution of all instruments necessary or convenient in the exercise of the powers
granted by this chapter or in the performance of the duties of the municipality and of
the officers, agents, and employees thereof;
13. The refraining from pledging or in any manner whatever claiming or taking the benefit
or advantage of any stay or extension law, whenever enacted and whenever the same
may be in force, which may affect the duties or covenants of the municipality in relation
to the refunding bonds, the performance of such covenants or duties, or the lien of
such refunding bonds;
14. The purchase out of any funds available therefor, including the proceeds of the sale of
refunding bonds, of any outstanding notes, bonds, or obligations, including refunding
bonds, and the price or prices at which and the manner in which such purchases may
be made; and
15. Such other acts and things as may be necessary or convenient or desirable to secure
the refunding bonds or which may tend to make such bonds more marketable.
Nothing in this section shall authorize any municipality to make any covenant, to perform any
act, or to do anything which shall require the expenditure by the municipality in any manner or
for any purpose of any funds other than revenues received or receivable from the enterprise.