N.D. Cent. Code § 2-06-10

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

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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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
ade 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.

9. 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.