North Dakota § 2-06-10 - Bonds and other obligations

§ 2-06-10. Bonds and other obligations

1. An authority may borrow money and issue bonds for any of its corporate purposes, including refunding bonds, in the form and upon the terms as it chooses, payable out of any revenues of the authority, including grants or contributions from the federal government or other sources. The bonds may be sold at not less than ninety-eight percent of par plus the interest accrued on the bonds to the date of the delivery. 2. Bond issues sold at private sale must bear interest at a rate or rates and be sold at a price resulting in an average net interest cost not exceeding twelve percent per annum. There is no interest rate ceiling on those issues sold at public sale or to the state or any of its agencies or instrumentalities. 3. Any bonds issued under this chapter by an authority, or by a governing body exercising the powers of an authority, are payable, as to principal and interest, solely from revenues of an airport and must so state on their face, but if any issue of bonds constitutes an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, each bond of the issue is, subject to the requirements of subsection 9, an equally valid and binding special obligation of the authority or municipality, in accordance with its terms, in an amount proportionate to the total amount of the issue which is within the limitation or restriction. Neither the 4. 5. 6. 7. 8. 9. commissioners of an authority nor the governing body of a municipality nor any person executing the bonds is liable personally by reason of the issuance, except to the extent the bonds, if constituting an indebtedness, exceed any applicable limitation or restriction. If any commissioners or officers of an authority or municipality whose signatures appear on any bonds or coupons ceases to be a commissioner or officer after authorization but before the delivery of the bonds, the signature of the commissioner or official remains valid and sufficient for all purposes, the same as if the commissioner or officer had remained in office until delivery. Any law to the contrary notwithstanding, any bonds issued under this chapter are fully negotiable. Any bond reciting in substance that it has been issued by the authority or municipality under this chapter and for a purpose authorized by this chapter must be deemed, in any suit, action, or proceeding involving the validity or enforceability of the bond or the security for the bond, to have been issued under this chapter and for that purpose. Bonds issued by an authority or municipality under this chapter are declared to be issued for an essential public and governmental purpose and, together with interest on the bonds, and income from the bonds, are exempt from all taxes. For the security of any such bonds, the authority or municipality may by resolution enter any covenant, agreement, or indenture authorized to be made as security for revenue bonds issued under chapter 40-35. The sums required to pay principal and interest and to create and maintain a reserve for the bonds may be made payable from any revenues referred to in this chapter, before the payment of current costs of operation and maintenance of the facilities. The governing body of a municipality that issues revenue bonds under this chapter shall levy a general tax upon all taxable property in the municipality for the payment of any deficiency in airport authority funds to pay principal or interest due for the bonds before August 1, 2015, and made payable from revenues of an airport authority. The governing body of the municipality may levy a general tax upon all taxable property in the municipality for the payment of any deficiency that is likely to occur within one year in airport authority funds to pay principal or interest due for revenue bonds issued under this chapter before August 1, 2015, and made payable from revenues of an airport authority. The taxes levied by the municipality under this subsection are not subject to any limitation of rate or amount applicable to other municipal taxes. Revenue bonds issued by an airport authority after July 31, 2015, must include the commitment of the municipality for the payment of any deficiency in airport authority funds to pay principal or interest due for revenue bonds as provided in this subsection. The governing body of the municipality shall levy a general tax upon all taxable property in the municipality for the payment of any deficiency in airport authority funds to pay principal or interest due for revenue bonds issued under this chapter after July 31, 2015, and made payable from revenues of an airport authority. The governing body of the municipality may levy a general tax upon all taxable property in the municipality for the payment of any deficiency that is likely to occur within one year in airport authority funds to pay principal or interest due for revenue bonds issued under this chapter after July 31, 2015, and made payable from revenues of an airport authority. The taxes levied by the municipality under this subsection are not subject to any limitation of rate or amount applicable to other municipal taxes. The commitment of the municipality and the issuance of the bonds must be approved by a majority vote of the governing body of each municipality involved or, upon placement of the question on the ballot at a primary, general, or special election, by approval of a majority of the qualified electors of the municipalities voting on the question.