§ 40-57-03 — Powers of municipality

Any municipality, in addition to the powers prescribed elsewhere by the laws of this state,
shall have the power to:
1. Acquire whether by purchase, lease, or gift, from any source whatsoever, any real
property, buildings, improvements on real property or buildings, including easements,
profits, rights in land and water rights deemed necessary in connection therewith, and
to construct, reconstruct, improve, better, or extend to real property, buildings, and
improvements on real property and buildings of any project which shall be located
within this state; provided, that the property acquired for the project shall be located

wholly within the boundaries of the municipality acquiring it unless a contract or
agreement between that municipality and any other municipality in which part or all of
the property is located is entered into as authorized by subsection 8.
2. Issue revenue bonds, in anticipation of the collection of revenues of the project, to
finance, in whole or in part, the cost of the project, whether then in existence or not.
3. Lease projects to any industrial or commercial enterprise or nonprofit corporation or to
any school district for career and technical education purposes, in such manner that
rents to be charged for the use of such projects shall be fixed, and revised from time to
time as necessary, so as to produce income and revenue sufficient to provide for the
prompt payment of interest upon all bonds issued hereunder, to create a sinking fund
to pay the principal of such bonds when due, and to provide for the operation,
maintenance, insurance on, and depreciation of such projects, and any taxes thereon.
4. With respect to any project, enter into revenue agreements providing for the
municipality to loan the proceeds derived from the issuance of bonds pursuant to this
chapter to the contracting party to be used to pay costs of the project and providing for
the repayment of the loan by the contracting party, and which may provide for such
loans or bonds to be secured by a mortgage on and security in the project or such
other security as may be determined by the municipality, whether delivered or granted
to the municipality, the holder or holders of said bonds, a trustee therefor or otherwise.
5. Pledge to the punctual payment of said bonds and the interest thereof, all or any part
of the revenues of such project, including the revenues of projects which shall be
acquired or constructed subsequent to the issuance of such bonds, as well as
revenues of projects existing when such bonds were issued.
6. Mortgage or otherwise encumber said projects in favor of the holder, or holders, of
said revenue bonds, or a trustee therefor; provided, that in creating any such
mortgages or encumbrances, a municipality shall not have the power to obligate itself
except with respect to the project.
7. Make all contracts, execute all instruments, and do all things necessary or convenient
in the exercise of the powers herein granted, or in the performance of its covenants or
duties, or in order to secure the payments of its bonds.
8. Enter into and perform such contracts and agreements with other municipalities,
political subdivisions, and state agencies, authorities, and institutions as the respective
governing bodies of the same may deem proper and feasible for or concerning the
planning, construction, lease, or other acquisition, and the financing of such facilities,
and the maintenance thereof. Any such municipalities so contracting with each other
may also provide in their contract or agreement for a board, commission, or such other
body as their governing bodies may deem proper for the supervision and general
management of the facilities of the project.
9. Accept from any authorized agency of the federal government loans or grants for the
planning, construction, acquisition, leasing, or other provision of any project, and to
enter into agreements with such agency respecting such loans or grants.
10. Sell and convey all properties acquired in connection with such projects, including
without limitation the sale and conveyance thereof subject to such mortgage as herein
provided, and the sale and conveyance thereof to the lessee under an option granted
in the lease of the project, for such price and at such time as the governing body of the
municipality may determine; provided, however, that no sale or conveyance of such
properties shall ever be made in such manner as to impair the rights or interests of the
holder, or holders, of any bonds issued under the authority of this chapter.
11. Issue revenue bonds to refund, in whole or in part, bonds previously issued under this
chapter.
12. If the project financed by the municipality consists of the construction, reconstruction,
improvement, or betterment of real property, buildings and improvements on real
property, and buildings, the provisions of chapter 48-01.2 and other applicable statutes
shall apply; except that the municipality, in the revenue agreement and resolution or
mortgage defining the terms and conditions upon which the project is to be
constructed and financed, or in a preliminary agreement establishing the general terms

of the revenue agreement and financing of the project when constructed, may permit a
contracting party which is not a governmental entity or a public institution, subject to
such terms and conditions as the municipality shall find necessary or desirable and
proper, to provide for the construction, acquisition, and installation of the buildings,
improvements, and equipment to be included in the project by any means available to
the contracting party, whether or not the procedure followed by the contracting party is
in conformity with said chapter 48-01.2.
No municipality may operate any project referred to in this chapter as a business or in any
manner whatsoever, except as the lessor, contract vendor, secured party, or lender thereof. No
debt on the general credit of the municipality may be incurred in any manner for any purpose
under this chapter. No municipality may pay out of its general fund for, or otherwise contribute to
the cost of, construction of a project.