§ 61-35-38 — Covenants that may be inserted in resolution authorizing bonds

North Dakota § 61-35-38

• Jurisdiction: North Dakota
• Title 61: Waters
• Ch. 61-35: Water Districts

Text

Any resolution authorizing the issuance of bonds under this chapter to completely or
partially finance or refinance the acquisition, construction, reconstruction, improvement,
betterment, or extension of a project may contain covenants that limit the exercise of powers
conferred by this chapter as to:
1. The rates, fees, tolls, or charges to be charged for the services, facilities, and
commodities of the project.
2. The use and disposition of the revenues of the project.
3. The creation, maintenance, regulation, use, and disposition of reserves or sinking
funds.
4. The purpose to which the proceeds of the sale of bonds may be applied and the use
and disposition of the proceeds.
5. 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
any suit or action on said bonds.
6. The payment by the district to the account of the project of a fair and reasonable
amount for the services, facilities, or commodities furnished the district or any of its
departments by the project.
7. The issuance of other or additional bonds or instruments payable from or constituting a
charge against the revenue of the project.
8. The insurance to be carried upon the project and the use and disposition of insurance
moneys.
9. The keeping, inspection, and audit of books of account.
10. 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.
11. The rights, liabilities, powers, and duties arising upon the breach by the district of any
covenants, conditions, or obligations.
12. 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 such trustee, and the limitations
of liabilities thereof.
13. 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.
14. 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 such consent may be given.
15. 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 deemed feasible and
desirable by the governing body, to other bonds or obligations of the district issued to
finance or refinance the project or that may be outstanding when the bonds thus
subordinated are issued and delivered.
Nothing in this section authorizes any 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.