§ 54-17.2-17 — Covenants and contracts with holders of evidences of indebtedness

North Dakota § 54-17.2-17

• Jurisdiction: North Dakota
• Title 54: State Government
• Ch. 54-17.2: North Dakota Building Authority

Text

In any resolution of the commission relating to the issuance of any evidence of
indebtedness, the commission may provide by covenants with the holders of the evidences of
indebtedness, to:
1. Secure the evidences of indebtedness.
2. Covenant against pledging all or any part of its revenues, receipts, or proceeds, or
against mortgaging or leasing all or any part of its real or personal property when
owned or thereafter acquired or against permitting or suffering any lien. Any pledge of
revenues, receipts, moneys, funds, levies, sales agreements, service contracts, or
other property or instruments made by the commission are valid and binding from the
time the pledge is made. The revenues, receipts, moneys, funds, or other property
pledged and thereafter received by the commission are immediately subject to the lien
of the pledge without any physical delivery or further act, and the lien of any pledge is
valid and binding as against all parties having claims of any kind in tort, contract, or
otherwise against the commission irrespective of whether the parties have notice of
the claim. Neither the resolution nor any other instrument by which a pledge under this
section is created need be filed or recorded except in the records of the commission.
3. Covenant as to any evidences of indebtedness to be issued and the limitations on the
evidence of indebtedness and their terms and conditions as to the custody, application,
investment, and disposition of their proceeds, as to the sources and methods of the
payment, and as to the rank or priority of the evidence of indebtedness.
4. Provide for the replacement of lost, stolen, destroyed, or mutilated evidences of
indebtedness.
5. Provide for the rights and liabilities, power and duties arising upon the breach of any
covenant, condition, or obligation; prescribe the events of default and the terms and
conditions upon which any or all of the evidences of indebtedness of the commission
become or may be declared due and payable before maturity; and provide the terms
and conditions upon which the declaration and its consequences may be waived.
6. Vest in a trustee or trustees within or without the state such property, rights, powers,
and duties in trust as the commission may determine.
7. Make covenants other than or in addition to the covenants authorized by this chapter
of like or different character, and to make the covenants to do or refrain from doing
acts and things as may be necessary, or convenient and desirable, to better secure
evidences of indebtedness or which, in the absolute discretion of the commission will
tend to make its evidences of indebtedness more marketable, notwithstanding that the
covenants, acts, or things may not be enumerated in this chapter.