§ 61-39-12 — Covenants and provisions that may be inserted in resolution authorizing bonds

North Dakota § 61-39-12

• Jurisdiction: North Dakota
• Title 61: Waters
• Ch. 61-39: Lake Agassiz Water Authority

Text

bonds.
Any resolution authorizing the issuance of bonds under this chapter may contain covenants
and provisions concerning:
1. The rates, fees, tolls, or charges to be charged for the services, facilities, and
commodities of a project.
2. The use and disposition of all or a portion of the authority's income, profits, and
revenues.
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
civil action on the bonds.
6. The creation, priority, and enforcement of liens against the authority's income, profits,
or revenues.
7. The issuance of other or additional bonds or instruments payable from or constituting a
charge against the authority's income, profits, or revenues.
8. The creation and use of synthetic interest rate contracts, interest rate caps, floors, and
collars, and other techniques to lower the authority's borrowing rate or reduce its
exposure to interest rate risk, or both.
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 authority 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 authority issued
to finance or refinance a project or that may be outstanding when the bonds thus
subordinated are issued and delivered.
16. Provisions with respect to the authority entering an agreement with a private bond
insurer, bank, or other liquidity or credit enhancer for bond insurance, a guarantee, a
letter of credit, or any other credit or liquidity enhancement that the authority 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 any such
enhancement or liquidity may be paid from bond proceeds or from other funds of the
authority available for this purpose.
This section does not authorize the authority to do anything in any manner or for any purpose
which would result in the creation or incurring of a debt or indebtedness of the state or the

issuance of any instrument which would constitute a debt or indebtedness of the state 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 of the state or the issuance of an instrument
constituting a debt or indebtedness of the state.