§ 40-57-14 — Covenants that may be inserted in ordinance or resolution authorizing bonds

North Dakota § 40-57-14

• Jurisdiction: North Dakota
• Title 40: Municipal Government
• Ch. 40-57: Municipal Industrial Development Act

Text

bonds.
1. Any ordinance or resolution authorizing the issuance of bonds under this chapter to
finance, in whole or in part, the cost of any project may contain covenants,
notwithstanding that the covenants may limit the exercise of powers conferred by this
chapter, as to:
a. The rents or payments to be charged with respect to the project.
b. The use and disposition of the revenues of the projects.
c. The creation and maintenance of sinking funds and the regulation, use, and
disposition thereof.
d. The creation and maintenance of funds to provide for maintaining the project and
replacement of those properties that are subject to depreciation.
e. The purpose, or purposes, to which the proceeds of this sale of bonds may be
applied and the use and disposition of the proceeds.
f. The nature of mortgages or other encumbrances on the project made in favor of
the holder of the bonds, or a trustee therefor.
g. 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 the bonds or on any coupons thereof.
h. The issuance of other or additional bonds or instruments payable from or
constituting a charge against the revenue of the project.
i. The insurance to be carried upon the project and the use and disposition of
insurance moneys.
j. The keeping of books of account and the inspection and audit thereof.
k. The terms and conditions upon which the bonds become or may be declared due
before maturity and the terms and conditions upon which the declaration and its
consequences may be waived.
l. The rights, liabilities, powers, and duties arising upon the breach by the
municipality of any covenants, conditions, or obligations.
m. The vesting in a trustee of the rights to enforce any covenants made to secure, to
pay, or in relation to, the bonds and the powers and duties of the trustee and the
limitation of liabilities thereof.
n. The terms and conditions upon which the holder 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.
o. A procedure by which the terms of any ordinance or resolution authorizing 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 bonds the holders
of which must consent thereto, and the manner in which consent may be given.
p. The subordination of the security of any bonds issued and the payment of
principal and interest thereof, to the extent deemed feasible and desirable by the
governing body, to other bonds or obligations of a municipality issued to finance

the project or that may be outstanding when the bonds thus subordinated are
issued and delivered.
2. Nothing in this chapter authorizes any municipality to do anything or for any purpose
that would result in the creation or incurring of a debt or indebtedness or the issuance
of any instrument that would constitute a bond or debt within the meaning of any
provisions, 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 debt.