§ 61-24-28 — Covenants and provisions that may be inserted in resolution authorizing bonds

North Dakota § 61-24-28

• Jurisdiction: North Dakota
• Title 61: Waters
• Ch. 61-24: Garrison Diversion Conservancy District

Text

bonds.
1. Any resolution authorizing the issuance of bonds under this chapter may contain
covenants and provisions concerning:
a. The rates, fees, tolls, or charges to be charged for the services, facilities, and
commodities of a project.
b. The use and disposition of all or a portion of the district's income, profits, and
revenues.
c. The creation, maintenance, regulation, use, and disposition of reserves or sinking
funds.
d. The purpose to which the proceeds of the sale of bonds may be applied and the
use and disposition of the proceeds.
e. The events of default and the rights and liabilities arising upon default and the
terms and conditions upon which the holders of bonds issued under this chapter
may bring civil action on the bonds.
f. The creation, priority, and enforcement of liens against the district's income,
profits, or revenues.
g. The issuance of other or additional bonds or instruments payable from, or
constituting a charge against, the district's income, profits, or revenues.
h. The creation and use of synthetic interest rate contracts, interest rate caps, floors,
and collars, and other techniques to lower the district's borrowing rate or reduce
its exposure to interest rate risk, or both.

i. The keeping, inspection, and audit of books of account.
j. The terms and conditions upon which any or all of the bonds become or may be
declared due before maturity and the terms and conditions upon which the
declaration and its consequences may be waived.
k. The rights, liabilities, powers, and duties arising upon the breach by the district of
any covenants, conditions, or obligations.
l. The vesting in a trustee of the right to enforce any covenants made to secure, to
pay, or in relation to the bonds, the powers and duties of the trustee, and the
limitations of liabilities of the trustee.
m. The terms and conditions upon which the holders of the bonds, or the holders of
any proportion or percentage of them, may enforce any covenants made or any
duties imposed under this chapter.
n. A procedure by which the terms of any resolution authorizing bonds or of any
other contract with bondholders, including an indenture of trust or similar
instrument, may be amended or abrogated, and the amount of bonds that holders
of which must consent to the resolution or contract, and the manner in which the
consent may be given.
o. The subordination of the security of any bonds issued under this chapter and the
payment of principal and interest on those bonds, to the extent determined
feasible and desirable by the governing body, to other bonds or obligations of the
district issued to finance or refinance a project or that may be outstanding when
the bonds thus subordinated are issued and delivered.
p. Provisions with respect to the district entering an agreement with a private bond
insurer, bank, or other liquidity or credit enhancer for bond insurance, a
guarantee, a letter or credit, or any other credit or liquidity enhancement that the
district may find to be advantageous or necessary to insure, guaranty, or enhance
the payment of the principal of or interest on or liquidity for some or all of the
bonds. The cost of the enhancement or liquidity may be paid from bond proceeds
or from other funds of the district available for this purpose.
q. The insurance to be carried upon the project and the use and disposition of
insurance moneys.
2. This section does not authorize the district to do anything in any manner or for any
purpose which would result in the creation or incurring of a debt or indebtedness or the
issuance of any instrument which would constitute a debt or indebtedness within the
meaning of any provision, limitation, or restriction of the Constitution of North Dakota
relating to the creation or incurring of a debt or indebtedness or the issuance of an
instrument constituting a debt or indebtedness.