§ 61-13-03 — Articles of incorporation or bylaws may restrict sales to stockholders - When stock to become appurtenant to land - Sale of water to others

When stock to become appurtenant to land - Sale of water to others.
Any corporation organized for irrigation purposes may provide in its articles of incorporation
or bylaws that water shall be sold, distributed, supplied, or delivered only to owners of its shares
of stock and that such shares shall be appurtenant to the lands described in the certificate
issued and evidencing such shares of stock. When such certificate and a copy of such articles
of incorporation or bylaws are recorded in the office of the recorder of the county in which such
lands are situated, such shares of stock shall become appurtenant to said lands and shall be
transferred only with the sale or transfer of such lands, except in the event of sale or forfeiture of
such shares of stock for delinquent assessments thereon as provided in section 61-13-04.
Notwithstanding such provision in its articles of incorporation or bylaws, any corporation
organized for irrigation purposes may sell water to an irrigation district, this state, or any
department or agency thereof, and to the United States, or any department or agency thereof, at
the same rates as to holders of shares of such corporation. In the event lands to which any such
stock is appurtenant are acquired by this state, the United States, or any department or agency
thereof, such stock shall be canceled by the corporation, but shall be reissued to any persons
subsequently acquiring title to such land.