N.D. Cent. Code § 6-09.4-06

6-09.4-06. Lending and borrowing powers generally

1. The public finance authority may lend money to political subdivisions or other

contracting parties through the purchase or holding of municipal securities which, in

the opinion of the attorney general, are properly eligible for purchase or holding by the

public finance authority under this chapter or chapter 40-57 and for purposes of the

public finance authority's capital financing program the principal amount of any one

issue does not exceed five hundred thousand dollars. However, the public finance

authority may lend money to political subdivisions through the purchase of securities

issued by the political subdivisions through the capital financing program without

regard to the principal amount of the bonds issued, if the industrial commission

approves a resolution that authorizes the public finance authority to purchase the

securities. The capital financing program authorizing resolution must state that the

industrial commission has determined that private bond markets will not be responsive

to the needs of the issuing political subdivision concerning the securities or, if it

appears that the securities can be sold through private bond markets without the

involvement of the public finance authority, the authorizing resolution must state

reasons for the public finance authority's involvement in the bond issue. The public

finance authority may hold such municipal securities for any length of time it finds to be

necessary. The public finance authority, for the purposes authorized by this chapter or

chapter 40-57, may issue its bonds payable solely from the revenues available to the

public finance authority which are authorized or pledged for payment of public finance

authority obligations, and to otherwise assist political subdivisions or other contracting

parties as provided in this chapter or chapter 40-57.

2. The public finance authority may lend money to the Bank of North Dakota under terms

and conditions requiring the Bank to use the proceeds to make loans for agricultural

improvements that qualify for assistance under the revolving loan fund program

established by chapter 61-28.2.

3. The public finance authority may transfer money to the Bank of North Dakota for

allocations to infrastructure projects and programs. Bonds issued for these purposes

are payable in each biennium solely from amounts the legislative assembly may

appropriate for debt service for any biennium or from a reserve fund established for

the bonds. Neither the obligation of the state to pay the bonds nor the obligation of the

issuer to pay debt service will constitute a debt of the state or any agency or political

subdivision of the state within the meaning of any constitutional or statutory provision.

The issuance of the bond does not directly or contingently obligate the state to pay the

bond payments beyond the appropriation for the current biennium of the state. The

issuer has no taxing power. In addition to providing funds for the transfers, the public

finance authority may use the bond proceeds to pay the costs of issuance of the

bonds, capitalized interest, and establish a reserve fund for the bonds.

4. Bonds of the public finance authority issued under this chapter or chapter 40-57 are

not in any way a debt or liability of the state and do not constitute a loan of the credit of

the state or create any debt or debts, liability or liabilities, on behalf of the state, or

constitute a pledge of the faith and credit of the state, but all such bonds are payable

solely from revenues pledged or available for their payment as authorized in this

chapter. Each bond must contain on its face a statement to the effect that the public

finance authority is obligated to pay such principal or interest, and redemption

premium, if any, and that neither the faith and credit nor the taxing power of the state is
and credit of the state, but all such bonds are payable

solely from revenues pledged or available for their payment as authorized in this

chapter. Each bond must contain on its face a statement to the effect that the public

finance authority is obligated to pay such principal or interest, and redemption

premium, if any, and that neither the faith and credit nor the taxing power of the state is

pledged to the payment of the principal of or the interest on such bonds. Specific funds

pledged to fulfill the public finance authority's obligations are obligations of the public

finance authority.

5. All expenses incurred in carrying out the purposes of this chapter or chapter 40-57 are

payable solely from revenues or funds provided or to be provided under this chapter or

chapter 40-57 and nothing in this chapter may be construed to authorize the public

finance authority to incur any indebtedness or liability on behalf of or payable by the

state.