§ 61-24-30 — Duties of district and officers relative to the issuance of bonds

North Dakota § 61-24-30

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

Text

1. To adequately secure the payment of bonds and interest on the bonds, the district and
its officers, agents, and employees shall:

a. Pay or cause to be paid punctually the principal and interest of every bond on the
dates, at the places, in the manner, and out of the funds provided in the refunding
bond and in accordance with the resolution authorizing its issuance.
b. Make certain any project financed by the district is operated in an efficient and
economical manner, enforce all water purchase and water sales contracts, and
establish, levy, maintain, and collect related necessary or proper fees, tolls,
rentals, rates, and other charges. The fees, tolls, rentals, rates, and other charges
must be sufficient, after making due and reasonable allowances for contingencies
and for a margin of error in the estimates, at least to:
(1) Pay all current expenses of operation and maintenance of any project;
(2) Make all payments required under any water purchase contract the district
may execute;
(3) Pay the interest and principal on the district's notes and bonds as they
become due;
(4) Comply with the terms of the resolution authorizing the issuance of the
bonds or any other contract or agreement with the holders of the funding
bonds; and
(5) Meet any other obligations of the district that are charges, liens, or
encumbrances upon the revenues of the district.
c. Operate, maintain, preserve, and keep every part of any tangible project financed
and owned or operated by the district in good repair, working order, and condition.
d. Enforce the provisions of all water purchase and sale contracts that produce
revenues pledged to payment of bonds.
e. Preserve and protect the security of the bonds and the rights of the bondholders
and warrant and defend such rights against all claims and demands.
f. Pay and discharge all lawful claims for labor, materials, and supplies which, if
unpaid, might become by law a lien or charge upon the revenues, or any part of
the revenues, superior to the lien of the bonds or which might impair the security
of the bonds.
g. Hold in trust the revenues pledged to the payment of the bonds for the benefit of
the holders of the bonds and apply the revenues only as provided by the
resolution authorizing the issuance of the bonds or, if the resolution is modified,
as provided in the modified resolution.
h. Keep proper separate books of record and accounts of the project in which
complete and correct entries must be made of all transactions relating to any part
of the project. All books and papers of the district are subject to inspection by the
holders of ten percent or more of the outstanding bonds or of their
representatives authorized in writing.
2. The duties contained in this section do not require any expenditure by the district of
any funds other than revenue received from a project or water sale contract. The
performance of the duties in this section is of the essence of the contract of the district
with the bondholders.