§ 40-61-08 — Bonds of an authority

North Dakota § 40-61-08

• Jurisdiction: North Dakota
• Title 40: Municipal Government
• Ch. 40-61: Municipal Parking Authority Act

Text

1. An authority may from time to time issue its negotiable bonds for any purpose
mentioned in section 40-61-03, including the acquisition, construction, reconstruction,
and repair of personal and real property of all kinds deemed by the board to be
necessary or desirable to carry out such purpose, as well as to pay such expenses as
may be deemed by the board necessary or desirable to the financing and placing the
project or projects in operation. An authority may from time to time and whenever it
deems refunding expedient, refund any bonds by the issuance of new bonds, whether
the bonds to be refunded have or have not matured, and may issue bonds partly to
refund bonds then outstanding and partly for any other purpose hereinabove
described. The refunding bonds may be exchanged for the bonds to be refunded, with
such cash adjustments as may be agreed, or may be sold and the proceeds applied to
the purchase or payment of the bonds to be refunded. In computing the total amount
of bonds of an authority which may at any time be outstanding, the amount of the
outstanding bonds to be refunded from the proceeds of the sale of new bonds or by
exchange for new bonds shall be excluded. Except as may otherwise be expressly
provided by an authority, the bonds of every issue shall be payable out of any moneys
or revenues of an authority, subject only to any agreements with the holders of
particular bonds pledging any particular moneys or revenues. Notwithstanding the fact
that the bonds may be payable from a special fund, if they are otherwise of such form
and character as to be negotiable instruments under chapter 41-08, the bonds shall be
and are hereby made negotiable instruments within the meaning of and for all the
purposes of chapter 41-08, subject only to the provisions of the bonds for registration.
2. The bonds shall be authorized by resolution of the board and shall bear such date or
dates, mature at such time or times, not exceeding thirty years from their respective
dates, bear interest at such rate or rates, resulting in an average annual net interest
cost not exceeding twelve percent per annum payable annually or semiannually on
those issues which are sold at private sale, be in such denominations, be in such form,
either coupon or registered, carry such registration privileges, be executed in such
manner, be payable in lawful money of the United States at such place or places, and
be subject to such terms of redemption, as such resolution or resolutions may provide.
The bonds may be sold at public or private sale for such price or prices as the
authority shall determine. There is no interest rate ceiling on those issues sold at
public sale or to the state of North Dakota or any of its agencies or instrumentalities.

3. Any resolution or resolutions authorizing any bonds or any issue of bonds may contain
provisions, which shall be part of the contract with the holders of the bonds thereby
authorized, as to:
a. Pledging all or any part of the revenues of a project or projects to secure the
payment of the bonds, subject to such agreements with bondholders as may then
exist.
b. The rentals, fees, and other charges to be charged, and the amounts to be raised
in each year thereby, and the use and disposition of the revenues.
c. The setting aside of reserves or sinking funds, and the regulation and disposition
thereof.
d. Limitations on the right of an authority to restrict and regulate the use of a project.
e. Limitations on the purpose to which the proceeds of sale of any issue of bonds
then or thereafter to be issued may be applied and pledging such proceeds to
secure the payment of the bonds or of any issue of the bonds.
f. Limitations on the issuance of additional bonds, the terms upon which additional
bonds may be issued and secured, and the refunding of outstanding or other
bonds.
g. The procedure, if any, by which the terms of any contract with bondholders may
be amended or abrogated, the amount of bonds the holders of which must
consent thereto, and the manner in which such consent may be given.
h. Limitations on the amount of moneys derived from a project to be expended for
operation, administration, or other expenses of an authority.
i. Vesting in a trustee or trustees of such property, rights, powers, and duties in trust
as an authority may determine which may include any or all of the rights, powers,
and duties of the trustee appointed by the bondholders pursuant to section
40-61-15, and limiting or abrogating the right of the bondholders to appoint a
trustee under said section or limiting the rights, duties, and powers of such
trustee.
j. Any other matters, of like or different character, which in any way affect the
security or protection of the bonds.
4. It is the intention hereof that any pledge of revenues or other moneys made by an
authority shall be valid and binding from the time when the pledge is made, that the
revenues or other moneys so pledged and thereafter received by an authority shall
immediately be subject to the lien of such pledge without any physical delivery thereof
or further act, and that the lien of any such pledge shall be valid and binding as against
all parties having claims of any kind in tort, contract, or otherwise against an authority
irrespective of whether such parties have notice thereof. Neither the resolution nor any
other instrument by which a pledge is created need be recorded.
5. Neither the members of an authority nor any person executing the bonds shall be
liable personally on the bonds or be subject to any personal liability or accountability
by reason of the issuance thereof.
6. An authority shall have power out of any funds available therefor to purchase bonds.
An authority may hold, cancel, or resell such bonds, subject to and in accordance with
agreements with bondholders.
7. In the discretion of an authority, the bonds may be secured by a trust indenture by and
between an authority and a corporate trustee, which may be any trust company or
bank within or without the state of North Dakota. Such trust indenture may contain
such provisions for protecting, and enforcing the rights and remedies of the
bondholders as may be reasonable and proper and not in violation of law, including
covenants setting forth the duties of an authority in relation to the construction,
maintenance, operation, repair, and insurance of the project or projects and the
custody, safeguarding, and application of all moneys, and may provide that the project
or projects shall be constructed and paid for under the supervision and approval of
consulting engineers. Notwithstanding the provisions of section 40-61-07, an authority
may provide by such trust indenture for the payment of the proceeds of the bonds and
the revenues of the project or projects to the trustee under such trust indenture or

other depository, and for the method of disbursement thereof, with such safeguards
and restrictions as it may determine. All expenses incurred in carrying out such trust
indenture may be treated as a part of the cost of maintenance, operation, and repairs
of the project or projects. If the bonds shall be secured by a trust indenture, the
bondholders shall have no authority to appoint a separate trustee to represent them,
and the trustee under such trust indenture shall have and possess all of the powers
which are conferred by section 40-61-15 upon a trustee appointed by bondholders.
8. An authority shall also have power and is hereby authorized from time to time to issue
revenue bonds in accordance with the provisions of chapter 40-57, but only for the
purpose of financing a parking project in support of those projects referred to in
subdivision c of subsection 2 of section 40-57-02. In the issuance of such bonds, the
authority shall have all of the powers granted to a municipality in chapter 40-57, and
shall be controlled in the exercise of such powers only by the provisions of chapter
40-57, and not by any of the provisions of this chapter with reference to other bonds
and notes of the authority.