§ 40-57-15 — Liability of municipality for bonds - Taxing power prohibited - Bond not a lien

North Dakota § 40-57-15

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

Text

lien.
Revenue bonds issued under this chapter shall not be payable from nor charged upon any
funds other than the revenue pledged to the payment thereof, nor shall the municipality issuing
the same be subject to any liability thereon. No holder or holders of any such bonds shall ever
have the right to compel any exercise of the taxing power of the municipality to pay any such
bonds or the interest thereon, nor to enforce payment thereon against any property of the
municipality except those projects, or portions thereof, mortgaged or otherwise encumbered
under the provisions and for the purpose of this chapter. Such bonds shall not constitute a
charge, lien, nor encumbrance, legal or equitable, upon any property of the municipality, except
those projects, or portions thereof, mortgaged or otherwise encumbered under the provisions
and for the purposes of this chapter.
Each bond under this chapter shall recite in substance that the bond, including interest
thereon, is payable solely from the revenue pledged to the payment thereof, except that such
bond may be secured by a mortgage or other encumbrance on the project, or portion thereof, as
authorized in this chapter, and that the bond does not constitute a debt of the municipality within
the meaning of any constitutional or statutory limitation.