North Dakota § 40-34-09 - Action maintained on failure to pay principal or interest of bonds - Court

§ 40-34-09. Action maintained on failure to pay principal or interest of bonds - Court

receiver - Sale of property - Redemption - Sheriff's deed. If a default occurs in the payment of the principal or interest of any bonds secured by a mortgage or deed of trust on the improvement and such default continues for a period of not less than six months, an action may be commenced in the district court of the county in which such improvement or some part thereof is located, by the holder or holders of not less than one-half of the outstanding past-due bonds or by the legal holder of the deed of trust, when authorized by a like number of bondholders, for the purpose of foreclosing the mortgage or deed of trust securing such bonds. In such action, the court may enter a decree providing for the management and operation of such improvement by a court receiver and for the sale of the property secured by such mortgage or trust deed and for the application of the net revenues arising from the operation of such plant upon the secured debt during the period of redemption, which shall be one year from and after the date of the sale thereof. If there is no redemption from such sale within the time herein provided, a sheriff's deed shall issue to the holder of the certificate of sale. The procedure subsequent to the entry of a foreclosure decree shall be, as far as applicable, that provided in title 32 for the sale of real property under special execution.