N.D. Cent. Code § 6-09.4-22

6-09.4-22. Protection of service during term of loan

1. The service provided or made available by a political subdivision through the

construction or acquisition of an improvement, or the revenues therefrom, financed in

whole or in part with a loan to the political subdivision from the public finance authority

or any other state agency or enterprise, may not be curtailed or limited by inclusion of

all or any part of the area served by the political subdivision within the boundaries of

any other political subdivision, or by the granting of any private franchise for similar

service within the area served by the political subdivision, during the term of the loan.

The political subdivision providing the service may not be required to obtain or secure

any franchise, license, or permit as a condition of continuing to serve the area if it is

included within the boundaries of another political subdivision during the term of the

loan.

2. Under the circumstances described in subsection 1, nothing prevents the two political

subdivisions, with the public finance authority or other state agency or enterprise, from

negotiating an agreement for the right or obligation to provide the service in question,

provided that any agreement is invalid and unenforceable unless the public finance

authority or other state agency or enterprise is a party to the agreement and unless the

agreement contains adequate safeguards to ensure the security and timely payment of

any outstanding bonds of the public finance authority issued to fund the loan.

3. An agreement made before January 1, 2025, and in violation of subsection 2 is

voidable only at the option of the public finance authority or other state agency or

enterprise upon thirty days written notice from the public finance authority or other

state agency or enterprise to the parties of the agreement. This subsection does not

apply to litigation commenced before January 1, 2025.