§ 40-58-10 — Issuance of bonds

North Dakota § 40-58-10

• Jurisdiction: North Dakota
• Title 40: Municipal Government
• Ch. 40-58: Urban Renewal Law

Text

1. A municipality may issue bonds from time to time in its discretion to finance the
undertaking of any development or renewal project, including the payment of principal
and interest upon any advances for surveys and plans for development or renewal
projects, and may issue refunding bonds for the payment or retirement of bonds
previously issued by it. The bonds must be made payable, as to both principal and
interest, solely from the income, proceeds, revenues, and funds of the municipality
derived from or held in connection with its undertaking and carrying out of
development or renewal projects; provided, however, that the payment of bonds, both
as to principal and interest, may be further secured by a pledge of any loan, grant, or
contribution from the federal government or other source, in aid of any development or
renewal projects of the municipality, and by a mortgage of all or any part of a
development or renewal project, title to which is in the municipality.
2. Bonds issued under this section do not constitute an indebtedness within the meaning
of any constitutional or statutory debt limitation or restriction, and are not subject to
any other law or charter relating to the authorization, issuance, or sale of bonds.
Bonds issued under this chapter are declared to be issued for an essential public and
governmental purpose and, together with interest and income, are exempt from all
taxation.
3. Bonds issued under this section must be authorized by resolution or ordinance of the
governing body and may be issued in one or more series and must bear such date or
dates, be payable upon demand or mature at such time or times, bear interest at such
rate or rates, resulting in an average annual net interest cost not exceeding twelve per
centum per annum on those issues which are sold at private sale. The bonds must be
in such denominations, be in such form, either coupon or registered, carry such
conversion or registration privileges, have such rank or priority, be executed in such
manner, be payable in such medium of payment, at such places, and be subject to
such terms of redemption with or without premium, be secured in such manner, and
have such other characteristics, as may be provided by the resolution or trust
indenture or mortgage issued pursuant to the resolution.
4. The bonds may be sold at not less than par at public sales held after notice published
prior to the sale in a newspaper having a general circulation in the area of operation
and in any other medium of publication as the municipality may determine or may be
exchanged for other bonds on the basis of par; provided, that the bonds may be sold
to the federal government at private sale at not less than par, and, in the event less
than all of the authorized principal amount of the bonds is sold to the federal
government, the balance may be sold at private sale at not less than par at an interest
cost to the municipality of not to exceed the interest cost to the municipality of the
portion of the bonds sold to the federal government. The bonds may also be sold at
private sale if the obligations do not exceed the total sum of one hundred thousand
dollars. There is no interest rate ceiling on issues sold at public sale or to the state of
North Dakota or any of its agencies or instrumentalities.
5. If a public official of the municipality whose signature appears on any bonds or
coupons issued under this chapter ceases to be a public official before the delivery of
the bonds, the signature is, nevertheless, valid and sufficient for all purposes, as if the
official had remained in office until the delivery. Any law to the contrary
notwithstanding, any bonds issued pursuant to this chapter are fully negotiable.
6. In any suit, action, or proceeding involving the validity or enforceability of any bond
issued under this chapter or the security for the bond, any bond reciting in substance
that it has been issued by the municipality in connection with a development or

renewal project is conclusively deemed to have been issued for that purpose and the
project is conclusively deemed to have been planned, located, and carried out in
accordance with this chapter.