North Dakota § 40-57-14 - Covenants that may be inserted in ordinance or resolution authorizing

§ 40-57-14. Covenants that may be inserted in ordinance or resolution authorizing

bonds. 1. Any ordinance or resolution authorizing the issuance of bonds under this chapter to finance, in whole or in part, the cost of any project may contain covenants, notwithstanding that the covenants may limit the exercise of powers conferred by this chapter, as to: a. The rents or payments to be charged with respect to the project. b. The use and disposition of the revenues of the projects. c. The creation and maintenance of sinking funds and the regulation, use, and disposition thereof. d. The creation and maintenance of funds to provide for maintaining the project and replacement of those properties that are subject to depreciation. e. The purpose, or purposes, to which the proceeds of this sale of bonds may be applied and the use and disposition of the proceeds. f. The nature of mortgages or other encumbrances on the project made in favor of the holder of the bonds, or a trustee therefor. g. The events of default and the rights and liabilities arising thereon and the terms and conditions upon which the holders of bonds issued under this chapter may bring any suit or action on the bonds or on any coupons thereof. h. The issuance of other or additional bonds or instruments payable from or constituting a charge against the revenue of the project. i. The insurance to be carried upon the project and the use and disposition of insurance moneys. j. The keeping of books of account and the inspection and audit thereof. k. The terms and conditions upon which 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. l. The rights, liabilities, powers, and duties arising upon the breach by the municipality of any covenants, conditions, or obligations. m. The vesting in a trustee of the rights to enforce any covenants made to secure, to pay, or in relation to, the bonds and the powers and duties of the trustee and the limitation of liabilities thereof. n. The terms and conditions upon which the holder of the bonds, or the holders of any proportion or percentage of them, may enforce any covenants made under this chapter or any duties imposed thereby. o. A procedure by which the terms of any ordinance or 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 the holders of which must consent thereto, and the manner in which consent may be given. p. The subordination of the security of any bonds issued and the payment of principal and interest thereof, to the extent deemed feasible and desirable by the governing body, to other bonds or obligations of a municipality issued to finance 2. the project or that may be outstanding when the bonds thus subordinated are issued and delivered. Nothing in this chapter authorizes any municipality to do anything or for any purpose that would result in the creation or incurring of a debt or indebtedness or the issuance of any instrument that would constitute a bond or debt within the meaning of any provisions, 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 bond or debt.