N.D. Cent. Code § 21-03-18 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-18
21-03-18. Form and contents of bonds
Status: in_force

21-03-18. Form and contents of bonds

Every municipal bond must be a negotiable instrument payable to bearer, or to bearer or the

registered owner, with or without interest coupons attached, interest to be payable annually or

semiannually at the rate or rates specified in the accepted bid for the purchase of said bonds.

Each bond must specify the time and place for payment of the principal and interest, and must

be numbered consecutively with the other bonds of the same issue, which must begin with

number one and continue upward, or if so directed by the governing body, must begin with any

other number and continue upward. Each bond must bear upon its face a name indicative of the

purpose of the issue specified in said initial resolution and must contain a certificate or recital of

any direct, annual, irrepealable tax which has been levied by the municipality upon all the

taxable property therein, together with any other tax or source of revenue which the municipality

may be authorized to impose or pledge and any annual or periodic payments or distributions

appropriated or allocated by the legislative assembly, sufficient to pay the interest when it falls

due, and also to pay and discharge the principal of such bond at maturity, and may contain any

other statement of fact not in conflict with said initial resolution. The entire issue may be

composed of a bond or bonds of a single denomination or of two or more denominations.
N.D. Cent. Code § 21-13-01 — ND Code / Title 21 / Chapter 21-13 / Section 21-13-01
21-13-01. Definitions
Status: in_force

21-13-01. Definitions

As used in this chapter, unless the context or subject matter otherwise requires:

1. "Political subdivision" means a local government unit created by statute or by the

Constitution of North Dakota for local governmental or other public purposes.

2. "Revenue" means any of the following:

a. Amounts to be received from a distribution of federal moneys, including bureau of

Indian affairs contracts.

b. Amounts to be received from a distribution of state moneys pursuant to a state

appropriation or a state statutory or constitutional provision.
N.D. Cent. Code § 21-03-22 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-22
21-03-22. Recording of bonds
Status: repealed

21-03-22. Recording of bonds

Repealed by S.L. 1993, ch. 239, § 9.
N.D. Cent. Code § 21-02-09 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-09
21-02-09. Certificates - Payable in order or before maturity
Status: repealed

21-02-09. Certificates - Payable in order or before maturity

Repealed by S.L. 1997, ch. 221, § 10.
N.D. Cent. Code § 21-04-06 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-06
21-04-06. Designating public depositories where there is only one financial institution or no financial institution
Status: in_force

21-04-06. Designating public depositories where there is only one financial institution

or no financial institution.

In a county where only one financial institution is located or functioning, the board may

designate such financial institution as a depository, or it may designate another financial

institution or financial institutions, within the state, or the Bank of North Dakota, as depository in

the manner and upon the conditions provided in this chapter. In a county where no financial

institution is in existence or functioning, the board may designate the Bank of North Dakota, or

any financial institution, outside of such county and within the state, as depository in the manner

and upon the conditions provided in this chapter for the selection of depositories of public funds.

In case there is no financial institution within any city, township, or school district, the governing

board thereof, if it deems it more advantageous and for the best public interest and

convenience, may select as a depository a conveniently located financial institution in an

adjoining county, which thereupon shall qualify as a depository by giving such bond as is

required from a financial institution within said county. Said bond must be approved by such

governing board as to sufficiency and by the state's attorney of the county in which such city,

township, or school district is located as to form and must be deposited in the office of the

county auditor of such county.
N.D. Cent. Code § 21-03-06 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-06
21-03-06. Purposes and specific limitations of bond issues
Status: repealed

21-03-06. Purposes and specific limitations of bond issues

Municipalities are empowered to borrow money, subject to the general limitations of

amounts prescribed by sections 21-03-04 and 21-03-05, and subject, in certain cases, to the

further limitations prescribed by the section, and to issue bonds thereof for the purposes

enumerated in the section. Such bonds may be issued:

1. By any county:

a. To provide county buildings and to acquire land for county purposes, but all

outstanding unpaid bonds for this purpose may not exceed in amount at any one

time five percent of the value of taxable property in such county.

b. To construct, enlarge, or repair, or aid in the construction, enlargement, or repair,

of bridges within or without the county, but all outstanding unpaid bonds for this

purpose may not exceed in amount at any one time one percent of the value of

taxable property in the county.

c. To provide funds for the original construction and for the improvement and

maintenance of highways, but all outstanding unpaid bonds for these purposes

may not exceed in amount at any one time four percent of the value of taxable

property in such county.

d. To provide funds for the construction of solid waste disposal facilities, for the

acquisition of real estate for that purpose, for facilities and equipment for the

collection of solid wastes, and for facilities and equipment to dispose of waste

products.

e. To provide money for the payment of any deficiency in the fund of any special

improvement district whenever the special assessment or taxes levied and

collected for the specific improvements are insufficient to pay the principal or

interest of any special improvement warrants or bonds issued for the

improvement and due and unpaid, but only to the extent of that deficiency.

f. To provide funds for the acquiring, laying out, equipping, and improving parks and

recreational facilities and to acquire land for these purposes.

g. To provide funds to purchase not to exceed two hundred forty acres

[97.12 hectares] of real estate and construct buildings and improvements for the

conduct of a county fair.

2. By any city:

a. For the erection, purchase, construction, enlargement, or repair of municipal or

public buildings for the following purposes: city halls, fire protection buildings,

waterworks buildings, police stations, city markets, public baths, hospitals,

libraries, museums, auditoriums, armories, gymnasiums, and music halls; and to

purchase and acquire sites for such buildings, and for the equipment and

furnishing thereof.

b. For the purchase of fire engines and other equipment and materials for fire

protection and for the purchase, construction, and installation of pumps,

watermains, reservoirs, and other necessary facilities for fire protection.

c. For the construction and extension of water plants or the purchase of existing

plants; the construction and improvement of watermains, sewers, and drains; or

for the joint construction and establishment of a water and sewer system; or for

the erection, planning, construction, and establishment of a sewage disposal

plant or system; or for the erection, construction, and enlargement of garbage

disposal plants and to purchase sites and grounds, either within or without the

limits of the city, for the disposal of sewage, garbage, and other refuse; or for the

leasing or purchase of lands, either within or without the limits of the city, for the

purpose of providing airports or landing fields or for the construction of buildings

thereon or the procuring of equipment therefor; and other like municipal

purposes.

d. To construct, acquire, enlarge, extend, or maintain any plant or equipment, or any

part of a plant or equipment, for the production, transmission, delivery or

furnishing of heat, light, or power, either directly or indirectly, to or for the public,

or to enlarge and extend such plants or equipment or any part thereof. This

subdivision may not be construed as an amendment to sections 40-33-01 to

40-33-09, nor to section 40-33-15.

e. To purchase, acquire, or establish any public utility and in cities having a

population of more than five thousand to purchase or acquire a public

transportation system. This subdivision may not be construed as impairing,

altering, or affecting the powers of the public service commission in any such

proceeding.

f. To provide for acquiring, laying out, and improving parks, parkways, park

buildings, public drives, boulevards, highways, streets, state highways, and

cemeteries, and to acquire land for these purposes.

g. To provide money for the payment of any deficiency in the fund of any special

improvement district whenever the special assessment or taxes levied and

collected for the specific improvements are then insufficient to pay the principal or

interest of any special improvement warrants issued for such improvement and

then due and unpaid, but only to the extent of such deficiency.

h. For the purchase of automobiles, trucks, tractors, flushers, sprinklers, street

sweepers, graders, rollers, loaders, plows, conveyors and other machinery,

equipment and materials for the cleaning, flushing, and sweeping of any street,

highway, avenue, alley, or public place within the city, the removal of snow and

ice therefrom, and other like municipal purposes.

i. For the purchase of trucks, garbage collectors, and other vehicles, equipment

and materials for the collection, removal, and disposal of garbage, rubbish,

ashes, refuse, and other wastes within the city.

j. To provide for the acquiring and constructing of parking lots and facilities for

motor vehicle parking.

k. To provide funds for the erection, purchase, construction, enlargement, or repair

of bridges, and to purchase and acquire necessary real estate, sites, or

easements for such bridges.

l. To provide funds for all works in connection with flood control and the necessary

land or easements for such flood control works.

m. To provide required matching funds for a capital construction project at a state

institution of higher education located within the city for which an appropriation

has been made by the legislative assembly. Bonds issued under this subdivision

are deemed to be issued for corporation purposes under subsection 5 of section

40-05-01.

3. Repealed by S.L. 1967, ch. 323, § 285.

4. By any public school district, or the school district of the city of Fargo, to purchase,

erect, enlarge, and improve school buildings and teacherages, to acquire sites therefor

and for playgrounds, to furnish and equip the same with heat, light, and ventilation or

other necessary apparatus, to pay advance rentals to the state school construction

fund, and also to purchase schoolbus equipment which must meet the standards set

up by the state superintendent of public instruction and the director of the department

of transportation.

4.1. By any school district having a community or junior college or off-campus educational

center as provided in chapter 15-18 which has an enrollment of one thousand or more

students, upon motion of the governing body, for capital construction purposes,

including the construction and equipping of new buildings or repairing or renovating

and equipping existing buildings. The governing body may levy a tax not exceeding

two mills on the dollar of the taxable valuation of the school district for the purpose of

paying the principal and interest on bonds issued pursuant to this subsection. The mill

levy authorized by this subsection is in addition to any mill levy limitations provided by

law. The total principal amount of bonds issued pursuant to this subsection may not

exceed seven hundred thousand dollars, and any indebtedness incurred by a school

district must be within debt limitations established by law. Bonds issued under this

subsection must never become a general obligation of this state.

5. By any township:

a. For the erection of a township hall and the purchase of a site therefor; and

b. For the construction of roads and bridges, but all outstanding unpaid bonds for

road and bridge purposes may not exceed in amount at any one time one and

one-half percent of the value of the taxable property in such township.

6. By any park district which constitutes a distinct municipality, to provide for acquiring,

laying out, and improving parks, parkways, boulevards, and pleasure drives, and to

acquire land for these purposes, but such indebtedness may not at any time exceed

one percent of the value of the taxable property in such park district.

7. By any municipality as herein defined:

a. For the purpose of paying any final judgment obtained against the municipality

within the state of North Dakota in case the governing body does not deem it

advisable to pay such judgment out of current revenues. In case the bonds

authorized by this subsection cannot be sold in accordance with this chapter, they

may be issued to the judgment creditor in payment of such judgment.

b. To provide necessary funds for the payment of the principal and interest of bonds

of such municipality, due or about to become due, for the payment of which the

municipality has not sufficient funds, but only to the extent of such deficit; or to

refund outstanding bonds of the municipality which are called for redemption and

prepayment in accordance with their terms, or by the consent of the holders

thereof, within six months from the date of the refunding bonds, when in the

judgment of the governing body the best interests of the municipality will be

served thereby, through the reduction of interest cost or the extension of

maturities.

c. To refund outstanding bonds not yet due or to become due or subject to

redemption and prepayment within six months, when in the judgment of the

governing body the best interests of the municipality will be served thereby,

through the reduction of debt service costs or the extension or adjustment of

maturities in relation to the resources available for their payment. The proceeds

of the refunding bonds, including any premium and accrued interest, must be

deposited in escrow with a suitable bank or trust company, having its principal

place of business within or without the state, and must be invested in such

amount and in securities maturing on such dates and bearing interest at such

rates as are required to provide funds sufficient to pay when due the interest to

accrue on each bond refunded to its maturity or, if it is prepayable and called for

redemption, to an earlier prior date upon which it may be called for redemption,

and to pay and redeem the principal amount of each such bond at maturity or, if

prepayable and called for redemption, at the earlier redemption date, and pay any

premium required for redemption on such date; or in the case of a crossover

refunding, must be invested in securities irrevocably appropriated to the payment

of principal and interest on the refunding bonds until the date the proceeds are

applied to the payment or redemption of the bonds to be refunded. The governing

body's resolution authorizing the refunding bonds shall irrevocably appropriate for

these purposes the escrow fund and all investments thereof, which must be held

in safekeeping by the escrow agent, and all income therefrom, and may provide

for the call for redemption of all prepayable bonds in accordance with their terms.

The securities to be purchased with the escrow fund must be limited to general

obligations of the United States, securities whose principal and interest payments

are guaranteed by the United States, and securities issued by the following

United States government agencies: banks for cooperatives, federal home loan

banks, federal intermediate credit banks, federal land banks, and the federal

national mortgage association. Such securities must be purchased

simultaneously with the delivery of the refunding bonds. Moneys on hand in the

sinking fund maintained for the payment of the outstanding bonds, and not

immediately needed for the payment of interest or principal due, or other legally

available funds of the municipality may likewise be deposited in the escrow fund

and invested in the same manner as the proceeds of the refunding bonds, to the

extent consistent with the provisions of resolutions authorizing the outstanding

bonds.

8. By any recreation service district:

a. For the construction and extension of water plants or the purchase of existing

plants; the construction and improvement of watermains, sewers, and drains; or

for the joint construction and establishment of a water and sewer system; or for

the erection, planning, construction, and establishment of a sewage disposal

plant or system; or for the erection, construction, and enlargement of garbage

disposal plants and to purchase sites and grounds, either within or without the

limits of the recreation service district, for the disposal of sewage, garbage, and

other refuse; and other like recreation service district purposes.

b. To provide for acquiring, laying out, and improving parks, parkways, park

buildings, public drives, boulevards, highways, streets, state highways, and to

acquire land for these purposes.

c. To provide money for the payment of any deficiency in the fund of any special

improvement district whenever the special assessment or taxes levied and

collected for the specific improvements are then insufficient to pay the principal or

interest of any special improvement warrants issued for such improvement and

then due and unpaid, but only to the extent of such deficiency.

d. For the purchase of trucks, garbage collectors, and other vehicles, equipment,

and materials for the collection, removal, and disposal of garbage, rubbish,

ashes, refuse, and other wastes within the recreation service district.

e. For the purpose of providing services described in section 11-28.2-04.

f. For the purpose of dredging any waters or waterways within or contiguous to the

recreation service district.

9. By any rural fire protection district for the purchase of such firefighting equipment,

ambulances, or other emergency vehicles, or the acquisition, construction, and

equipping of such real property and improvements thereto, as is necessary and proper

to carry out the general fire protection program of the district.
N.D. Cent. Code § 21-03-21.1 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-21.1
21-03-21.1. Attorney general to give opinion on legal sufficiency of investments
Status: repealed

21-03-21.1. Attorney general to give opinion on legal sufficiency of investments

Repealed by S.L. 1993, ch. 239, § 9.
N.D. Cent. Code § 21-03-45 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-45
21-03-45. Sinking fund - Surplus placed in general fund
Status: in_force

21-03-45. Sinking fund - Surplus placed in general fund

Any surplus in a sinking fund after all of the bonds for the payment of which the fund was

created have been paid and canceled and after all investments of the second and third class

finally have been disposed of or realized upon, must, within two years, be placed in the general

fund of the municipal treasury.
N.D. Cent. Code § 21-03-06.1 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-06.1
21-03-06.1. School district voter approval of building authority or other indirect funding methods - Building construction project approval
Status: in_force

21-03-06.1. School district voter approval of building authority or other indirect

funding methods - Building construction project approval.

1. Notwithstanding any other provision of law, a school board may not enter an

agreement pursuant to internal revenue service revenue ruling 63-20 under which

payments of any kind would be required by the school district to any building authority

or other entity that incurs indebtedness or other obligation in connection with

acquisition, improvements, or construction of any property or structure at a total cost of

four million dollars or more to be used by the school district unless the agreement has

been approved by a vote of a majority of the qualified electors of the school district

voting on the question at a regular or special school district election if the agreement is

for acquisition, improvements, or construction of any property or structure for which an

election would be required if the school district undertook the acquisition,

improvements, or construction project through issuance of bonds of the school district.

2. The school board of a school district may not enter an agreement pursuant to internal

revenue service revenue ruling 63-20 under which payments of any kind would be

required by the school district to any building authority or other entity that incurs

indebtedness or other obligation regarding construction, purchase, repair,

improvement, modernization, or renovation of any building or facility to be used by the

school district without approval by the superintendent of public instruction in the

manner provided in section 15.1-36-01, if the approval by the superintendent of public

instruction would be required for the project under section 15.1-36-01 if the school

district undertook the project itself.
N.D. Cent. Code § 21-07-04 — ND Code / Title 21 / Chapter 21-07 / Section 21-07-04
21-07-04. Penalty
Status: repealed

21-07-04. Penalty

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 21-06-05 — ND Code / Title 21 / Chapter 21-06 / Section 21-06-05
21-06-05. Documents which may be destroyed - When
Status: repealed

21-06-05. Documents which may be destroyed - When

Repealed by S.L. 2015, ch. 140, § 4.
N.D. Cent. Code § 21-10-04 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-04
21-10-04. Board - Meetings
Status: in_force

21-10-04. Board - Meetings

The state investment board shall select one of its members to serve as chair, one to serve

as vice chair, and shall meet at the call of the chair or upon written notice signed by two

members of the board.
N.D. Cent. Code § 21-05-03 — ND Code / Title 21 / Chapter 21-05 / Section 21-05-03
21-05-03. Additional proof may be required
Status: in_force

21-05-03. Additional proof may be required

The board of county commissioners or board of township supervisors before which any bill,

claim, account, or demand against the county or township shall come for audit and approval, if

deemed necessary, may require to be furnished a statement made under oath containing such

other information as is deemed necessary for the further verification of any such bill, claim,

account, or demand.
N.D. Cent. Code § 21-01-10 — ND Code / Title 21 / Chapter 21-01 / Section 21-01-10
21-01-10. Cashbook and register open to inspection
Status: in_force

21-01-10. Cashbook and register open to inspection

The cashbook and register of the treasurer of any taxing district must be open at all times to

the inspection of any person in whose name any warrant is registered and unpaid.
N.D. Cent. Code § 21-02.1-03 — ND Code / Title 21 / Chapter 21-02.1 / Section 21-02.1-03
21-02.1-03. Hearing of petition - Notice of filing and hearing
Status: in_force

21-02.1-03. Hearing of petition - Notice of filing and hearing

The court shall fix the time for the hearing of the petition provided for in this chapter and

shall order the clerk of court to have published a notice of the filing of the petition, stating the

time and place the court will hear the petition, and stating that any person interested in the

proceedings for the issuance or payment of the evidence of indebtedness, on or before the day

fixed for hearing of the petition, may answer the petition. The petition may be referred to and

described in the notice as the petition of the named political subdivision requesting that the

proceedings be examined, approved, and confirmed by the court. Notice must be given by

publication in the official newspaper of the county in which the petition is filed, once each week

for two consecutive weeks. The hearing must be held, in the discretion of the court, not less

than fifteen days nor more than sixty days after the last publication of the notice.
N.D. Cent. Code § 21-09-02 — ND Code / Title 21 / Chapter 21-09 / Section 21-09-02
21-09-02. Definitions
Status: in_force

21-09-02. Definitions

The following terms, as used or referred to in this chapter, have the following meanings:

1. "Bonds" includes bonds, notes, warrants, debentures, certificates of indebtedness,

temporary bonds, temporary notes, interim receipts, interim certificates, and all

instruments or obligations evidencing or representing indebtedness, or evidencing or

representing the borrowing of money, or evidencing or representing a charge, lien, or

encumbrance on specific revenues, income, or property of a public body, including all

revenue bonds, special improvement warrants, refunding improvement bonds and

warrants, and, without limitation by the enumeration of the foregoing, all other

instruments and obligations, whether payable from a special fund or supported by a

pledge of the full faith and credit of the public body issuing the same.

2. "Public body" includes any county, city, township, school district, irrigation district,

drainage district, special improvement district, and any other political or governmental

subdivision of the state of North Dakota, and any board, commission, agency, or officer

thereof.
N.D. Cent. Code § 21-10-08 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-08
21-10-08. Reserves - Percentage limitations
Status: in_force

21-10-08. Reserves - Percentage limitations

In order to meet claims and liabilities, reserves must be established and maintained in each

of the funds in accordance with the investment policy and asset allocation established for each

fund.
N.D. Cent. Code § 21-01-08 — ND Code / Title 21 / Chapter 21-01 / Section 21-01-08
21-01-08. Treasurer to notify holder to present warrant - Order of payment
Status: in_force

21-01-08. Treasurer to notify holder to present warrant - Order of payment

Whenever the treasurer of a taxing district has received money belonging to any particular

fund sufficient to pay the warrant drawn against such fund which by the treasurer's warrant

register appears to be next payable, such treasurer immediately shall notify by mail the person

in whose name such warrant is registered, or that person's assignee, if notified of the

assignment, that unless such warrant is presented for payment on or before the date specified

in such notice, the interest thereon ceases after such date. All warrants so registered must be

paid in the order of their registration.
N.D. Cent. Code § 21-10-03 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-03
21-10-03. Cooperation with Bank of North Dakota
Status: repealed

21-10-03. Cooperation with Bank of North Dakota

Repealed by S.L. 1987, ch. 190, § 14.
N.D. Cent. Code § 21-02-15 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-15
21-02-15. Certificate of indebtedness exempt from state taxation - Review for exemption from federal taxation
Status: in_force

21-02-15. Certificate of indebtedness exempt from state taxation - Review for

exemption from federal taxation.

Payments of the principal of and interest on a certificate of indebtedness issued under this

chapter are exempt from all taxes, except inheritance, estate, and transfer taxes, imposed by

this state, any county or city, or any other political subdivision. However, a political subdivision

shall review, or cause to be reviewed, federal tax laws and regulations to determine the federal

tax-exempt status of interest payments on a certificate of indebtedness prior to the issuance and

sale of the certificate on a purported federally tax-exempt basis.
N.D. Cent. Code § 21-04-02 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-02
21-04-02. State funds to be deposited in Bank of North Dakota
Status: in_force

21-04-02. State funds to be deposited in Bank of North Dakota

Public funds belonging to or in the custody of the state must be deposited in the Bank of

North Dakota.
N.D. Cent. Code § 21-01-04 — ND Code / Title 21 / Chapter 21-01 / Section 21-01-04
21-01-04. Warrants for current expenses
Status: in_force

21-01-04. Warrants for current expenses

In case any taxing district is unable to sell its certificates of indebtedness, it may issue

warrants in payment of current expenses in excess of cash on hand, but not in excess of

eighty-five percent of taxes levied for the fiscal year of issue but uncollected and not otherwise

encumbered, plus fifty percent of the uncollected and not otherwise encumbered taxes of the

four preceding years, and the funds derived from the collection of taxes for the current year and

such preceding years, to the extent that the same have been encumbered, constitute a special

fund for the payment of warrants issued against such taxes. If warrants are issued in excess of

such limitations, such warrants possess no validity as against the taxing district, but the officials

knowingly and willfully issuing the same are liable personally for the payment thereof.
N.D. Cent. Code § 21-01-07 — ND Code / Title 21 / Chapter 21-01 / Section 21-01-07
21-01-07. Warrant register - By whom kept - Form
Status: in_force

21-01-07. Warrant register - By whom kept - Form

The treasurer of every taxing district shall keep a warrant register, which must show in

columns appropriately arranged:

1. The number and registered number, date, and amount of each warrant presented.

2. The particular fund upon which the same is drawn.

3. The date of presentation.

4. The name and address of the person in whose name the same is registered, and

subsequent assignees, if furnished therewith.

5. The date of payment, when made.

6. The amount of interest, and the total amount paid thereon, with the date when notice

to the person in whose name such warrant is registered and is mailed as hereinafter

provided.
N.D. Cent. Code § 21-05-05 — ND Code / Title 21 / Chapter 21-05 / Section 21-05-05
21-05-05. Voucher form
Status: repealed

21-05-05. Voucher form

Repealed by S.L. 1983, ch. 283, § 6.
N.D. Cent. Code § 21-09-04 — ND Code / Title 21 / Chapter 21-09 / Section 21-09-04
21-09-04. Matters validated
Status: in_force

21-09-04. Matters validated

It is the intent hereof that, without limiting the generality of the foregoing:

1. This chapter applies to all defects, irregularities and omissions, other than

constitutional, in the calling, notice, or conduct of any election, any public hearing, or

any meeting of a governing board, council, or commission held for the purpose of

authorizing bonds or any project financed by bonds; in the creation of an improvement

district, the determination of the necessity and the making of contracts for the

acquisition or construction of such project; in the levy of any tax or special assessment

appropriated for the payment of bonds; in the establishment of rates and charges for

the service of any project; in the pledge of net revenues derived therefrom to the

payment of bonds, and in the making of covenants securing such payment.

2. This chapter applies notwithstanding any lack of power, other than constitutional, to

engage in a project or any portion thereof, or to finance the same by issuing bonds; to

combine two or more projects or bond issues in the same proceedings; to conduct

proceedings in the sequence actually followed; or to exercise jurisdiction over the site

at which any project is located, within or without the corporate limits of the public body

or of the county in which it is situated or of the state of North Dakota.
N.D. Cent. Code § 21-04-08 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-08
21-04-08. Bond of depository - Approval or disapproval - Term
Status: in_force

21-04-08. Bond of depository - Approval or disapproval - Term

Except as is otherwise provided in sections 21-04-16 and 21-04-17, and before any deposit

is made in any depository other than the Bank of North Dakota, by or in behalf of any public

corporation, such depository shall furnish a bond payable to the public corporation making such

deposit in an amount that at least equals the largest deposit that at any time may be in such

depository. Such bond must be approved as to form by the state's attorney and as to amount

and sufficiency by the board. If the board fails or refuses to approve any such bond, the same

may be presented to the judge of the district court, upon three days' notice to the clerk of the

public corporation to which such bond was submitted, and the judge shall proceed forthwith to

hear and determine the sufficiency of such bond and may approve or disapprove the same as

the facts warrant. If the judge approves such bond, the said financial institution must be

declared a depository of the funds of such public corporation. The sureties on all bonds required

by public corporations according to the provisions of this chapter shall justify as required by

chapter 32-02. In lieu of such personal bond, the governing board of the public corporation

involved may require the financial institution designated as a depository to file a surety bond for

a sum equal to the amount of funds such financial institution may receive according to the

provisions of this chapter. Such bond, when approved, must be deposited with the county

auditor. Such bond must be a continuing bond and must be binding until the proper board of the

public corporation shall require a new or different bond, but in no case involving the deposit of

funds of public corporations may such bond be continued without a renewal thereof for a longer

period than four years.
N.D. Cent. Code § 21-04-15 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-15
21-04-15. Townships and public school districts - Selection of depositories at any time
Status: in_force

21-04-15. Townships and public school districts - Selection of depositories at any

time.

The board of supervisors of any township and the school board of any public school district

may designate depositories at any meeting of such board and no notice to financial institutions

need be given and no formal proposals need be received.
N.D. Cent. Code § 21-04-09 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-09
21-04-09. Pledge of security in place of depository bond
Status: in_force

21-04-09. Pledge of security in place of depository bond

The treasurer of a public corporation and every other individual legally charged with the

custody of public funds may accept from any financial institution, as security for repayment of

deposits, a pledge of securities in lieu of a personal or surety bond. When securities are

pledged to the board of any public corporation, the treasurer or other individual legally charged

with the custody of public funds shall require security in the amount of one hundred ten dollars

for every one hundred dollars of public deposits. Securities that are eligible for the pledge are

bills, notes, or bonds issued by the United States government, its agencies or instrumentalities,

all bonds and notes guaranteed by the United States government, irrevocable standby letters of

credit issued by federal home loan banks of a rating of AA or better by Moody's Investors

Service, Inc. or Standard & Poor's Corporation, federal land bank bonds, bonds, notes,

warrants, certificates of indebtedness, insured certificates of deposit, shares of investment

companies registered under the Investment Companies Act of 1940, letters of credit issued by

the Bank of North Dakota, and all other forms of securities issued by the state of North Dakota,

its boards, agencies, or instrumentalities, or by any county, city, township, school district, park

district, or other political subdivision of the state of North Dakota, whether payable from special

revenues or supported by the full faith and credit of the issuing body, and bonds issued by any

other state of the United States or other securities approved by the banking board. The

securities and securities sold under agreements to repurchase as described in section 21-06-07

must be delivered to and held for safekeeping by any financial institution, other than the

depository, which the depository and the public corporation may agree upon. Whenever any

securities are deposited for safekeeping with a custodian, the custodian shall issue a joint

receipt to the depository and the public corporation.

Any financial institution pledging securities, at any time it deems it advisable or desirable,

and without the consent of the board of the public corporation, may substitute other eligible

securities for all or any part of the securities pledged. The securities substituted must, at the

time of the substitution, have a market value at least equal to the market value of the securities

released and delivered to the depository.

In the event of the substitution the holder or custodian of the pledged securities shall, on the

same day, forward by mail or electronic transmission to the public corporation and the

depository financial institution a receipt specifically describing and identifying both the securities

substituted and those released and returned to the depository financial institution.

A depository financial institution may fulfill the pledge of securities requirements of this

section by maintaining a security pledge schedule that establishes the following:

1. The names of all public bodies maintaining deposits with the financial institution.

2. The amount of each deposit maintained by each public body.

3. The amount of federal deposit insurance corporation insurance applied to each

account.

4. The net deposits exceeding federal deposit insurance corporation coverage for each

account.

5. The amount of net deposit exceeding federal deposit insurance corporation deposit

insurance multiplied by one hundred ten percent for each account.

6. The amount of securities needed to be pledged to fulfill the requirements of this

section.

7. The total number of qualified securities pledged by the financial institution under the

requirements of this section.

A financial institution is in compliance with this section as long as the security pledge

schedule discloses the total qualified securities pledged in excess of the total pledges needed

for a total amount of deposits maintained by all the public bodies with the financial institution as

verified by the custodian of the securities every three months and copies are provided to the

custodian of the securities and to each of the public corporations maintaining deposits with the

financial institution.

No pledge of security or bond may be required for any funds deposited with a financial

institution directly or by a financial institution's participation as a member of a deposit placement

service to the extent that the deposits are insured or guaranteed by the federal deposit

insurance corporation or the national credit union administration as determined by the

commissioner of financial institutions or an insurance company that is qualified to offer excess

deposit insurance in this state and which has a rating of A- or better by A.M. Best Company Inc.,

or the equivalent rating by another recognized rating organization as determined by the

insurance commissioner.
N.D. Cent. Code § 21-09-03 — ND Code / Title 21 / Chapter 21-09 / Section 21-09-03
21-09-03. Validation of bonds and incidental proceedings
Status: in_force

21-09-03. Validation of bonds and incidental proceedings

All bonds heretofore issued by any public body for any purpose and in any manner

consistent with the constitution of the state, and all proceedings heretofore taken by any such

body for the authorization, issuance, sale, exchange, execution, and delivery of its bonds, and

for the performance of any conditions precedent thereto, and for the provision of taxes, special

assessments, and other funds to pay such bonds and interest thereon, are hereby validated,

ratified, approved, and confirmed, notwithstanding any lack of power of such public body, or of

the governing board, council, commission, or officers thereof, to authorize, issue, sell,

exchange, execute, or deliver the same, and notwithstanding any defects, irregularities, or

omissions in such proceedings or in such authorization, issuance, sale, exchange, execution, or

delivery; and all bonds heretofore issued by such public bodies, and all bonds hereafter issued

by them under the authority of proceedings heretofore taken are binding, legal, and enforceable

obligations of such public bodies respectively.
N.D. Cent. Code § 21-02-11 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-11
21-02-11. Advertising for bids - When required - Procedure similar to bond sales
Status: in_force

21-02-11. Advertising for bids - When required - Procedure similar to bond sales

If the governing board of a political subdivision determines to borrow upon certificates of

indebtedness, the governing board shall follow the procedure and is subject to the penalties

prescribed in the provisions relating to the sale of bonds in chapter 21-03.
N.D. Cent. Code § 21-04-21 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-21
21-04-21. Public corporations with less than five hundred dollars
Status: in_force

21-04-21. Public corporations with less than five hundred dollars

This chapter does not apply to a public corporation unless the amount in the treasury of

such corporation equals or exceeds the sum of five hundred dollars. The board of a public

corporation having on hand less than five hundred dollars, and therefore not within the

provisions of this chapter, shall deposit all the funds of such public corporation nevertheless in

some financial institution selected by the board thereof under such conditions and restrictions as

seem adequate to such board to protect the public interest.
N.D. Cent. Code § 21-03.1-06 — ND Code / Title 21 / Chapter 21-03.1 / Section 21-03.1-06
21-03.1-06. Agents - Depositories
Status: in_force

21-03.1-06. Agents - Depositories

1. An issuer may appoint for such term as may be agreed, including for so long as a

registered public obligation may be outstanding, corporate or other authenticating

agents, transfer agents, registrars, paying, or other agents, specify the terms of their

appointment, including their rights, their compensation and duties, limits upon their

liabilities, and provision for their payment of liquidated damages in the event of breach

of certain of the duties imposed, which liquidated damages may be made payable to

the issuer, the owner, or a financial intermediary. None of such agents need have an

office or do business within this state.

2. An issuer may agree with custodian banks and financial intermediaries, and nominees

of any of them, in connection with the establishment and maintenance by others of a

central depository system for the transfer or pledge of registered public obligations.

Any such custodian banks and financial intermediaries, and nominees, may, if qualified

and acting as fiduciaries, also serve as authenticating agents, transfer agents,

registrars, paying, or other agents of the issuer with respect to the same issue of

registered public obligations.

3. Nothing precludes the issuer from itself performing, either alone or jointly with other

issuers, any transfer, registration, authentication, payment, or other function described

in this section.
N.D. Cent. Code § 21-10-08.1 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-08.1
21-10-08.1. Social investment - Prohibition
Status: in_force

21-10-08.1. Social investment - Prohibition

1. As used in this section, "social investment" means the consideration of socially

responsible criteria and environmental, social, and governance impact criteria in the

investment or commitment of public funds for the purpose of obtaining an effect other

than a maximized return at a prudent level of risk to the state.

2. Except as otherwise provided in a state investment policy relating to the investment of

the legacy fund and unless the state investment board, or any other state entity

investing public funds, can demonstrate a social investment would provide an

equivalent or superior rate of return compared to a similar investment that is not a

social investment and has a similar time horizon and risk, the state investment board,

or other state entity, may not invest state funds for the purpose of social investment.
N.D. Cent. Code § 21-03-28 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-28
21-03-28. Bids - Accompanied by draft - Sale to best bidder - Rejection of all bids
Status: in_force

21-03-28. Bids - Accompanied by draft - Sale to best bidder - Rejection of all bids

All bids must be accompanied by a certified check, cashier's check, surety bond, or bank

draft, in the amount of not less than one percent of the bid. After all bids have been received,

they must be delivered forthwith to the governing body of the municipality, which shall award the

sale of such bonds to the bidder who agrees to purchase them upon the terms most favorable to

the municipality, unless the governing body determines to reject all bids. The governing body

has the right to reject any and all bids. If no bids are received or if all bids received are rejected,

the governing body may, without readvertising the bonds for sale, negotiate the sale of all of the

bonds to any person upon terms complying with those specified in the notice of sale theretofore

published, and if bids were rejected, more favorable to the municipality than those specified in a

rejected bid. No sale may be for less than ninety-eight percent of the par value of such bonds

plus the interest accrued on the bonds to the date of the delivery thereof.
N.D. Cent. Code § 21-04-07 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-07
21-04-07. Limitation on county deposit in financial institution
Status: in_force

21-04-07. Limitation on county deposit in financial institution

In no case may the amount of county funds deposited by the board of county

commissioners in any one financial institution exceed the combined capital and surplus of such

financial institution. In a county where the deposits to be made by the board of county

commissioners of county funds exceed the combined capital and surplus of all the financial

institutions in the county, qualified as depositories, the board of county commissioners

nevertheless may deposit such county funds within the county upon the condition that such

financial institutions furnish sufficient bonds as required in this chapter.
N.D. Cent. Code § 21-04-10 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-10
21-04-10. Interest payable to financial institution - Sale of pledged securities on default
Status: in_force

21-04-10. Interest payable to financial institution - Sale of pledged securities on

default.

All interest which becomes due and is paid on securities pledged to secure public deposits

must be paid over to the depository financial institution until such time as it defaults in the

repayment of the funds of the public corporation deposited as provided herein. After thirty days

from such default, upon demand in writing made by the public corporation involved, the

custodian shall deliver the securities to the public corporation with which pledged, and such

securities may be sold as in the case of other pledges, and the proceeds thereof, or so much

thereof as may be necessary, must be applied to the repayment of the public deposit.
N.D. Cent. Code § 21-10-07.1 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-07.1
21-10-07.1. Prudent investor rule - Exception
Status: in_force

21-10-07.1. Prudent investor rule - Exception

Notwithstanding section 21-10-07, for purposes of investment of the legacy fund, the state

investment board shall give preference to qualified investment firms and financial institutions

with a presence in the state.
N.D. Cent. Code § 21-03-38 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-38
21-03-38. Bond proceeds - Kept in separate fund - Protection of purchaser
Status: in_force

21-03-38. Bond proceeds - Kept in separate fund - Protection of purchaser

All borrowed money must be paid into the treasury of the municipality borrowing it, must be

kept there until used, in a fund separate and distinct from all other funds, to be used for the

purpose for which it was borrowed and for no other purpose except that such funds may be

temporarily invested in securities as are approved by the governing board in accordance with

the provisions of section 21-03-43 and as otherwise provided by section 21-03-42, and may be

withdrawn only upon order or warrants made payable out of said fund and expressing the

purpose for which they were drawn. The purchaser of any bonds issued pursuant to this chapter

is not obliged to see to the application of the purchase price thereof, but is protected fully in

paying for such bonds by the receipt of the county treasurer or of the officer delivering such

bonds. Income from the temporary investing of receipts from bond issues must be available for

use for such purpose as such bond issue was approved or, upon resolution of the governing

body of the municipality, must be paid into the sinking fund for use in payment of bonds issued.
N.D. Cent. Code § 21-02-03 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-03
21-02-03. Certificate of county auditor
Status: in_force

21-02-03. Certificate of county auditor

A tax is deemed to have been levied when it has been voted by the tax levying board and

certified to the county auditor. Each certificate of indebtedness issued wholly or in part against

revenues that consist of levied and uncollected taxes must bear the certificate of the county

auditor to the effect that it, together with all other outstanding certificates issued wholly or in part

against revenues that consist of levied and uncollected taxes, is within the amount of

uncollected taxes that have been levied lawfully in the then present year, plus uncollected taxes

of the four preceding years. A county auditor who willfully signs a false certificate upon a

certificate of indebtedness is guilty of a class A misdemeanor.
N.D. Cent. Code § 21-03-33 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-33
21-03-33. Penalty for noncompliance
Status: repealed

21-03-33. Penalty for noncompliance

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 21-05-01 — ND Code / Title 21 / Chapter 21-05 / Section 21-05-01
21-05-01. Claims against township or county - How accounts stated
Status: in_force

21-05-01. Claims against township or county - How accounts stated

No account or claim against any township or county of this state may be allowed by the

governing body thereof until a full itemized statement in writing has been filed with the governing

body or unless otherwise authorized by the governing body pursuant to contract or other action.

The governing body, in its discretion, may require the filing of any additional information which it

may deem necessary to the proper understanding and audit of any claim or account and it may

require the filing of a sworn statement in such form as it may prescribe. The provisions of this

section, however, do not apply to any claim or demand for an annual salary or per diem of jurors

or witnesses fixed by or in pursuance of any statute. Whenever the county auditor is not readily

available to sign and issue warrants upon the county treasurer for the payment of the salary or

per diem of jurors or witnesses, the county treasurer is authorized to pay such salary or per

diem upon the written order of the judge of the court in which such jurors or witnesses have

served and in such cases the county treasurer shall furnish the county auditor with statements

of all claims paid.
N.D. Cent. Code § 21-05-04 — ND Code / Title 21 / Chapter 21-05 / Section 21-05-04
21-05-04. Penalty
Status: repealed

21-05-04. Penalty

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 21-03.1-05 — ND Code / Title 21 / Chapter 21-03.1 / Section 21-03.1-05
21-03.1-05. Seal
Status: in_force

21-03.1-05. Seal

When a seal is required or permitted in the execution of any certificated registered public

obligation, an authorized officer may cause the seal to be printed, engraved, stamped, or

otherwise placed in facsimile thereon. The facsimile seal has the same legal effect as the

impression of the seal.
N.D. Cent. Code § 21-03-05 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-05
21-03-05. Limitation applicable to independent municipal indebtedness
Status: in_force

21-03-05. Limitation applicable to independent municipal indebtedness

The amount limited in section 21-03-04 includes such indebtedness only as may be

incurred independently by a municipality for its own separate purposes and does not include

any indebtedness, in whole or in part, that may be incurred independently by any other

municipality for its own separate purposes, even though the territory and taxable property of

either municipality constitutes the whole or a part of the territory and taxable property of the

other.
N.D. Cent. Code § 21-02.1-02 — ND Code / Title 21 / Chapter 21-02.1 / Section 21-02.1-02
21-02.1-02. Petition by political subdivision of the state for court to examine and approve evidence of indebtedness proceedings - Contents of petition
Status: in_force

21-02.1-02. Petition by political subdivision of the state for court to examine and

approve evidence of indebtedness proceedings - Contents of petition.

Any political subdivision of the state may file in the district court of any county in which the

political subdivision is situated, in whole or in part, a petition, prior to or subsequent to issuance

of any evidence of indebtedness, requesting that any or all of the proceedings regarding the

issuance or payment of the evidence of indebtedness be examined, approved, and confirmed

by the court. The petition must state the facts concerning the proceedings and that the petitioner

is a political subdivision of the state.
N.D. Cent. Code § 21-03-15 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-15
21-03-15. Direct, annual, irrepealable tax
Status: in_force

21-03-15. Direct, annual, irrepealable tax

The governing body of every municipality issuing bonds under the authority of this chapter,

before the delivery thereof, shall levy by recorded resolution or ordinance a direct, annual tax

which, together with any other moneys provided by, or sources of revenue authorized by, the

legislative assembly, shall be sufficient in amount to pay, and for the express purpose of paying,

the interest on such bonds as it falls due, and also to pay and discharge the principal thereof at

maturity. The municipality shall be and continue without power to repeal such levy or levies or to

obstruct the collection of any such tax until such payments have been made or provided for,

except that if the governing body in any year makes an irrevocable appropriation to the sinking

fund of moneys actually on hand, or if there is on hand in the sinking fund an amount that would

be sufficient to retire the bonds, the governing body shall cause its recording officer to certify the

fact and amount to the county auditor with the direction that the county auditor should reduce by

the amount so certified the amount otherwise to be included in the tax rolls next thereafter

prepared. A copy of such resolution or ordinance must be certified to and filed with the county

auditor, and after the issuance of such bonds, any such tax on property from year to year must

be carried into the tax roll of the municipality and collected as other property taxes are collected.

No further annual levy for that purpose is necessary. The governing body may, in its discretion

and in anticipation of the sale of bonds, at any time after the issuance of bonds has been

authorized by the electors or by resolution of the governing body when no election is required,

levy and certify to the county auditor for collection a portion of the tax herein required, which

must be credited against the amount otherwise required to be levied after the bonds have been

sold. Any other tax or source of revenue authorized by the legislative assembly for such

purposes and imposed or pledged by the municipality for those purposes is likewise irrepealable

and subject to the same conditions and limitations as any taxes levied on property for the same

purposes. Any annual or periodic amounts provided for the municipality issuing such bonds by

the legislative assembly out of state funds for paying the interest and principal of such bonds

constitute an irrepealable and continuing appropriation until the liability for all interest and

principal payments of the bonds have been satisfied. When insufficient funds are available to

pay the matured bonds, the county auditor shall notify the governing body of such municipality

of such deficiency and the governing body thereupon may levy a direct tax on the taxable

property to pay said deficiency and interest thereon. If the governing body of the issuing

municipality no longer exists, the county auditor shall levy a direct tax against the taxable

property in the original issuing municipality to pay said deficiency and the interest thereon. The

manner of levy, certification, and collection of said tax must be the same as provided by this

section for the levy, certification, and collection of taxes by this section. When such bonds are

further sustained by revenue of a revenue-producing utility, industry, or enterprise, said

resolution or ordinance may provide that the tax to be levied and assessed may be reduced by

such amount and under such conditions as must be determined in said resolution or ordinance

so long as adequate provision is always made for the payment of such bonds and interest

thereon.
N.D. Cent. Code § 21-02-08 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-08
21-02-08. Percentage of current taxes used to pay delinquent certificates of indebtedness
Status: in_force

21-02-08. Percentage of current taxes used to pay delinquent certificates of

indebtedness.

If sufficient funds are not collected to retire outstanding certificates of indebtedness issued

wholly or in part against revenues that consist of uncollected taxes within two months after their

due date, there must be set aside monthly from current tax collections, exclusive of tax levies

dedicated to the payment of principal of and interest on outstanding evidences of indebtedness,

not less than ten percent of the amount of the collections until the past due certificates have

been paid.
N.D. Cent. Code § 21-03-27 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-27
21-03-27. Bids - Where received - Record
Status: in_force

21-03-27. Bids - Where received - Record

The notice must specify the time and place at which bids will be received. The place where

bids shall be received must be fixed by the governing board and may be within or outside the

state. At the time and place specified, the governing board of the taxing district must be

represented by one of its officials, or by the county auditor or some other person acting at the

request of the board, who shall receive competitive bids, whether submitted orally or in writing.

When the bids are received, the county auditor, auditor, secretary, or other person acting at the

request of the board shall enter in a permanent record the amount and rate of interest of each

bid and the name and address of the bidder.
N.D. Cent. Code § 21-03-03 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-03
21-03-03. Irregularities do not vitiate bonds
Status: in_force

21-03-03. Irregularities do not vitiate bonds

Defects and irregularities in any proceeding had in substantial compliance with this chapter,

when the issue is for a lawful purpose and is unaffected by fraud and does not exceed any

constitutional or statutory limitation of amount, do not invalidate the bonds issued nor the

indebtedness incurred after the bonds have been sold and the proceeds thereof received by the

municipality, nor after the performance of a contract has been entered upon by a party who is to

receive the said bonds or the proceeds thereof as consideration for said contract.
N.D. Cent. Code § 21-01-09 — ND Code / Title 21 / Chapter 21-01 / Section 21-01-09
21-01-09. Cashbook and register to be footed daily and closed annually - Penalty for failure
Status: in_force

21-01-09. Cashbook and register to be footed daily and closed annually - Penalty for

failure.

The treasurer of every taxing district, daily, as moneys are received, shall foot the several

columns of the treasurer's cashbook and register and carry the amounts forward. At the close of

each year, in case the amount of money received by such treasurer is insufficient to pay the

warrants so registered, the treasurer shall close the account in such register for that year, and

shall carry forward the excess. Any treasurer who fails regularly to enter upon the treasurer's

cashbook the amounts so received or who fails to keep the treasurer's cashbook footed from

day to day, as required by this section, for the space of three days, shall forfeit for each offense

the sum of one hundred dollars, to be recovered in a civil action on the treasurer's official bond

by any person holding a warrant drawn on such treasurer.
N.D. Cent. Code § 21-03-38.1 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-38.1
21-03-38.1. Disposal of bond proceeds
Status: in_force

21-03-38.1. Disposal of bond proceeds

The proceeds of any municipal bond sale, which have not been used for the purpose issued

within three years after date of issue, may be disposed of by the governing body of the

municipality as follows:

1. Sufficient funds must be transferred to the sinking fund of the issue in an amount equal

to the principal of bonds outstanding and the interest requirements.

2. The governing body may, by a two-thirds vote of all its members, transfer the funds to

any or all other debt sinking funds of the municipality.

3. The governing body, upon approval by a majority vote of the qualified electors, voting

on the question at an election called therefor, may use the funds for some other

purpose authorized by law.

If any funds remain, they must be transferred to the general fund of the municipality.
N.D. Cent. Code § 21-10-06 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-06
21-10-06. Funds under management of board - Accounts
Status: in_force

21-10-06. Funds under management of board - Accounts

1. Subject to the provisions of section 21-10-02, the board shall invest the following

funds:

a. State bonding fund.

b. Teachers' fund for retirement.

c. State fire and tornado fund.

d. Workforce safety and insurance fund.

e. Public employees retirement system.

f. Insurance regulatory trust fund.

g. State risk management fund.

h. Budget stabilization fund.

i. Water projects stabilization fund.

j. Health care trust fund.

k. Cultural endowment fund.

l. Petroleum tank release compensation fund.

m. Legacy fund.

n. Opioid settlement fund.

o. A fund under contract with the board pursuant to subsection 3.

2. Separate accounting must be maintained for each of the funds listed in subsection 1.

The moneys of the individual funds may be commingled for investment purposes when

determined advantageous.

3. The state investment board may provide investment services to, and manage the

money of, any agency, institution, or political subdivision of the state, subject to

agreement with the industrial commission. The scope of services to be provided by the

state investment board to the agency, institution, or political subdivision must be

specified in a written contract. The state investment board may charge a fee for

providing investment services and any revenue collected must be deposited in the

state retirement and investment fund.
N.D. Cent. Code § 21-01-01 — ND Code / Title 21 / Chapter 21-01 / Section 21-01-01
21-01-01. Definitions
Status: in_force

21-01-01. Definitions

1. The term "taxing district" when used in this chapter, unless the context thereof clearly

requires otherwise, means any county, city, school district, township, park district,

water conservation and flood control district, Garrison Diversion Conservancy District,

county park district, joint county park district, or irrigation district in the state.

2. The term "warrant" when used in this chapter means an order drawn by the proper

taxing district officials on the treasurer, or other person acting as treasurer, of said

taxing district, the warrant or order to be so drawn that when signed by the treasurer,

or person acting as treasurer, in an appropriate place it becomes a check on the taxing

district depository. No warrant upon the treasurer, or person acting as treasurer, may

be delivered or mailed to the payee or payee's agent or representative until such

warrant has been signed by the treasurer, or person acting as treasurer, and entered

on the books of the treasurer or person acting as treasurer as a check drawn on a

bank depository.
N.D. Cent. Code § 21-03-08 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-08
21-03-08. Maximum interest rate, maturity, and denominations
Status: in_force

21-03-08. Maximum interest rate, maturity, and denominations

No bonds issued under the provisions of this chapter may bear interest at a rate or rates

and be sold privately at a price resulting in an average net interest cost higher than twelve

percent per annum. There is no interest rate ceiling on those issues sold at public sale or to the

state of North Dakota or any of its agencies or instrumentalities. No bonds issued under this

chapter may run for a longer period than twenty years from their date. The bonds may not bear

a date earlier than the date of the election authorizing their issuance, if such election is required,

nor earlier than the date of the adoption of the resolution of the governing body determining to

issue bonds for which no election is required.
N.D. Cent. Code § 21-01-03 — ND Code / Title 21 / Chapter 21-01 / Section 21-01-03
21-01-03. Maximum amount of warrants or indebtedness - Violation of provisions - Liability - Penalty
Status: in_force

21-01-03. Maximum amount of warrants or indebtedness - Violation of provisions -

Liability - Penalty.

Except as otherwise provided in this chapter, no warrant purporting to be drawn upon the

funds in the hands of the treasurer of any taxing district may be issued in excess of the amount

of cash in the hands of the treasurer exclusive of sinking funds and funds for the payment of

interest upon bond issues. No indebtedness may be incurred, and no undertakings or

expenditures authorized, in excess of unencumbered uncollected taxes which have been levied

during the current year plus the unencumbered uncollected taxes of the four preceding years.

Any warrant issued, contract entered into, or purported indebtedness incurred, in contravention

of this section is null and void, but this provision is not intended to detract from the provisions of

section 21-02-03 with reference to the incontestability of certificates of indebtedness. Any officer

willfully executing or participating in the execution of any warrant or contract or attempting to

incur any indebtedness of any such taxing district in contravention of this section is guilty of a

class A misdemeanor. Any officer executing or participating in the execution of any warrant in

contravention of this section is personally liable for the payment thereof to the holder in due

course.
N.D. Cent. Code § 21-10-02 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-02
21-10-02. Board - Powers and duties
Status: in_force

21-10-02. Board - Powers and duties

1. The board is charged with the investment of the funds enumerated in section
N.D. Cent. Code § 21-06-07 — ND Code / Title 21 / Chapter 21-06 / Section 21-06-07
21-06-07. Political subdivisions may invest funds
Status: in_force

21-06-07. Political subdivisions may invest funds

1. Counties, cities, school districts, park districts, water resource boards, and townships

in this state may invest moneys in their general fund, or balances in any special or

temporary fund, in:

a. Bonds, treasury bills and notes, or other securities that are a direct obligation of,

or an obligation insured or guaranteed by, the treasury of the United States, or its

agencies, instrumentalities, or organizations created by an act of Congress.

b. Securities sold under agreements to repurchase written by a financial institution

in which the underlying securities for the agreement to repurchase are of a type

listed above.

c. Certificates of deposit fully insured by the federal deposit insurance corporation or

by the state.

d. Certificates of deposit, savings deposits, or other deposits fully insured or

guaranteed by the federal deposit insurance corporation and placed for the

benefit of the public depositor by a public depository through an appropriate

deposit placement service as determined by the commissioner of financial

institutions.

e. State and local securities:

(1) Any security that is a general obligation of any state or local government

with taxing powers and is rated in the highest three categories by a

nationally recognized rating agency.

(2) An obligation of the state housing finance agency that is rated in the highest

two categories by a nationally recognized rating agency.

(3) Any security that is a general obligation of a school district and is rated in

the highest two categories by a nationally recognized rating agency.

(4) Obligations of this state and general obligations of its political subdivisions.

f. Commercial paper issued by a United States corporation rated in the highest

quality category by at least two nationally recognized rating agencies and

matures in two hundred seventy days or less.

2. Bonds, treasury bills and notes, or other securities so purchased must be taken into

consideration in making levies for the ensuing year, and when funds are needed for

current expenses, the governing board and authorities of such municipalities may

convert those obligations into cash.
N.D. Cent. Code § 21-03-44 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-44
21-03-44. Sinking fund - Use for unauthorized purpose
Status: in_force

21-03-44. Sinking fund - Use for unauthorized purpose

Money may not be withdrawn from a sinking fund and appropriated to any purpose other

than the purpose for which the fund was instituted until that purpose has been accomplished,

except as authorized by section 6-09.4-23 and sections 21-03-42 through 21-03-45.
N.D. Cent. Code § 21-13-03 — ND Code / Title 21 / Chapter 21-13 / Section 21-13-03
21-13-03. Limit on amount of loans - Loan terms
Status: in_force

21-13-03. Limit on amount of loans - Loan terms

Except as limited by this section, a bank or a credit union and political subdivision may

agree to terms and conditions of a bank or credit union loan, including the rate of interest and

any collateral.

1. A political subdivision may have no more than five hundred thousand dollars in

outstanding principal on bank or credit union loans at any time.

2. A political subdivision bank or credit union loan must be paid in full within five years

from the date of loan origination.

3. The loan documents must describe the revenues from which the loan is anticipated to

be paid and may require the political subdivision to establish a separate fund for the

repayment of the loan, including interest, on or before the due date.

4. Collateral for a loan may consist only of property that is purchased with loan proceeds.
N.D. Cent. Code § 21-03-17 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-17
21-03-17. Record of proceedings
Status: in_force

21-03-17. Record of proceedings

Every municipality shall provide and keep a record book in which its auditor or secretary

shall record a full and correct statement of every step or proceeding had or taken in the course

of authorizing and issuing municipal bonds, including a statement of the affirmative and negative

votes cast by the electors.
N.D. Cent. Code § 21-03-27.1 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-27.1
21-03-27.1. Sealed bids
Status: in_force

21-03-27.1. Sealed bids

The governing body of any municipality calling for bids for the purchase of municipal bonds,

as provided in sections 21-03-26 and 21-03-27, may in its discretion determine, and may state

in the notice calling for such bids, that only sealed bids shall be received and considered.
N.D. Cent. Code § 21-10-10 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-10
21-10-10. State investment board fund - Cost of operation of board
Status: repealed

21-10-10. State investment board fund - Cost of operation of board

Repealed by S.L. 1989, ch. 667, § 13.
N.D. Cent. Code § 21-02-02 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-02
21-02-02. Certificates of indebtedness - By whom issued - Term - Interest - General obligation
Status: in_force

21-02-02. Certificates of indebtedness - By whom issued - Term - Interest - General

obligation.

Political subdivisions may borrow against revenues through the issuance of certificates of

indebtedness. A certificate of indebtedness consists of an agreement on the part of a political

subdivision to pay a stated sum on or before a specified date, together with interest thereon at a

rate or rates resulting in an average annual net interest cost not exceeding twelve percent if the

certificate is sold privately. There is no interest rate ceiling on a certificate sold at public sale or

to the state of North Dakota or any of its agencies or instrumentalities. The certificate must be

signed on behalf of the political subdivision by its president or chairman, or equivalent officer,

and also by its auditor, business manager or secretary, or equivalent officer, and must be

payable from revenues. A certificate of indebtedness issued wholly or in part against revenues

that consist of levied and uncollected taxes is a general obligation of the issuing political

subdivision to the extent of the levied and uncollected taxes.
N.D. Cent. Code § 21-03.1-02 — ND Code / Title 21 / Chapter 21-03.1 / Section 21-03.1-02
21-03.1-02. System of registration
Status: in_force

21-03.1-02. System of registration

1. Each issuer is authorized to establish and maintain a system of registration with

respect to each obligation which it issues. The system may either be:

a. A system pursuant to which only certificated registered public obligations are

issued.

b. A system pursuant to which only uncertificated registered public obligations are

issued.

c. A system pursuant to which both certificated and uncertificated registered public

obligations are issued.

The issuer may amend, discontinue, and reinstitute any system, from time to time,

subject to covenants.

2. The system must be established, amended, discontinued, or reinstituted for the issuer

by, and must be maintained for the issuer as provided by, the official or official body.

3. The system must be described in the registered public obligation or in the official

actions which provide for original issuance of the registered public obligation, and in

subsequent official actions providing for amendments and other matters from time to

time. Such description may be by reference to a program of the issuer which is

established by the official or official body.

4. The system must define the method or methods by which transfer of the registered

public obligation shall be effective with respect to the issuer, and by which payment of

principal and any interest must be made. The system may permit the issuance of

registered public obligations in any denomination to represent several registered public

obligations of smaller denominations. The system may also provide for the form of any

certificated registered public obligation or of any writing relating to an uncertificated

registered public obligation, for identifying numbers or other designations, for a

sufficient supply of certificates for subsequent transfers, for record and payment dates,

for varying denominations, for communications to holders or owners of obligations,

and for accounting, canceled certificate destruction registration and release of security

interests and other incidental matters. Unless the issuer otherwise provides, the record

date for interest payable on the first or fifteenth day of a month must be the fifteenth

day or the last business day of the preceding month, respectively, and for interest

payable on other than the first or fifteenth day of a month, must be the fifteenth

calendar day before the interest payment date.

5. Under a system pursuant to which both certificated and uncertificated registered public

obligations are issued, both types of registered public obligations may be regularly

issued, or one type may be regularly issued and the other type issued only under

described circumstances or to particular described categories of owners and provision

may be made for registration and release of security interests in registered public

obligations.

6. The system may include covenants of the issuer as to amendments, discontinuances,

and reinstitutions of the system and the effect of such on the exemption of interest

from the income tax provided for by the Code.

7. Whenever an issuer issues an uncertificated registered public obligation, the system of

registration may provide that a true copy of the official actions of the issuer relating to

such uncertificated registered public obligation be maintained by the issuer or by the

person, if any, maintaining such system on behalf of the issuer, so long as the

uncertificated registered public obligation remains outstanding and unpaid. A copy of

such official actions, verified to be such by an authorized officer, is admissible before

any court of record, administrative body, or arbitration panel without further

authentication.

8. Nothing in this chapter precludes a conversion from one of the forms of registered

public obligations provided for by this chapter to a form of obligations not provided for

by this chapter if interest on the obligation so converted will continue to be exempt

from the income tax provided for by the Code.

9. The rights provided by other laws with respect to obligations in forms not provided for

by this chapter, to the extent not inconsistent with this chapter, apply with respect to

registered public obligations issued in forms authorized by this chapter.
N.D. Cent. Code § 21-04-14 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-14
21-04-14. Proposals for deposit
Status: in_force

21-04-14. Proposals for deposit

A proposal for deposit must be sealed and delivered to the clerk and must have attached to

it a statement showing the financial condition of the financial institution at that time and as

disclosed in the several statements of financial condition made during the last preceding twelve

months. The clerk shall lay the proposals before the board at the January meeting. Such

proposals must be opened by the clerk in the presence of the board and the board, thereupon,

shall proceed to designate a depository of public funds under its control.
N.D. Cent. Code § 21-02-05 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-05
21-02-05. Record of certificates of indebtedness issued against levied and uncollected taxes
Status: in_force

21-02-05. Record of certificates of indebtedness issued against levied and

uncollected taxes.

The county auditor shall keep a record in which must be entered, as to each certificate of

indebtedness issued by a political subdivision and certified to by the county auditor as provided

in section 21-02-03, the same information as required for the recording of bonds in section
N.D. Cent. Code § 21-03-07 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-07
21-03-07. Election required - Exceptions
Status: in_force

21-03-07. Election required - Exceptions

A municipality or governing board of a municipality may not issue bonds without being first

authorized to do so, at a primary or general election if the municipality is a county, city, public

school district, or park district, by a vote equal to sixty percent of all the qualified voters of the

municipality voting upon the question of issuing the bonds except:

1. As otherwise provided in section 21-03-04.

2. The governing body may issue bonds of the municipality for the purpose and within the

limitations specified by subdivision e of subsection 1 of section 21-03-06, subdivision g

of subsection 2 of section 21-03-06, and subsections 4.1 and 7 of section 21-03-06

without an election.

3. The governing body of any municipality may issue bonds of the municipality for the

purpose of providing funds to meet its share of the cost of any highway project

undertaken under an agreement entered by the governing body with the United States

government, the director of the department of transportation, the board of county

commissioners, or any of them, including the cost of any construction, improvement,

financing, planning, and acquisition of right of way of a bridge eligible for matching

funds, highway routed through the municipality and of any bridges and controlled

access facilities thereon and any necessary additional width or capacity of the bridge

or roadway thereof greater than that required for federal or state bridge or highway

purposes, and of any necessary relaying of utility mains and conduits, curbs and

gutters, and the installation of utility service connections and streetlights.

a. The portion of the total cost of the project to be paid by the municipality under the

agreement, including all items of cost incurred directly by the municipality and all

amounts to be paid by it for work done or contracted for by other parties to the

agreement, may not exceed a sum equal to thirty percent of the total cost,

including engineering and other incidental costs, of all construction and

reconstruction work to be done plus fifty percent of the total cost of all right of way

to be acquired in connection therewith.

b. The initial resolution authorizing issuance of bonds under this subsection must be

published in the official newspaper of the municipality. Within sixty days after

publication, an owner of taxable property within the municipality may file with the

auditor or chief fiscal officer of the municipality a written protest against adoption

of the resolution.

c. A protest must describe the property that is the subject of the protest. If the

governing body finds protests have been signed by the owners of taxable

property having an assessed valuation equal to five percent or more of the

assessed valuation of all taxable property in the municipality, as most recently

finally equalized, all further proceedings under the initial resolution are barred.

d. Nothing in this section may be deemed to prevent any municipality from

appropriating funds for or financing out of taxes, special assessments, or utility

revenues any work incidental to the project, in the manner and to the extent

otherwise permitted by law, and the cost of any work so financed may not be

included in computing the portion of the project cost payable by the municipality,

within the meaning of this subsection, unless the work is actually called for by the

agreement between the municipality and the other governmental agencies

involved.

4. a. The governing body of any city may, by resolution adopted by a two-thirds vote,

authorize and issue general obligation bonds of the city for the purpose of

providing funds to pay the cost of any improvement of the types stated below, to

the extent that the governing body determines that the cost should be paid by the

city and should not be assessed upon property specially benefited thereby;

provided that the initial resolution authorizing the bonds must be published in the

official newspaper, and any owner of taxable property within the city may, within

sixty days after the publication, file with the city auditor a protest against the

adoption of the resolution. If the governing body finds the protests to have been

signed by the owners of taxable property having an assessed valuation equal to

five percent or more of the assessed valuation of all taxable property within the

city, as last finally equalized, all further proceedings under the initial resolution are

barred. This procedure is authorized for the financing of the following types of

improvements:

(1) Any street improvement, as defined in subsection 2 of section 40-22-01, to

be made in or upon any federal or state highway or any other street

designated by ordinance as an arterial street.

(2) The construction of a bridge, culvert, overpass, or underpass at the

intersection of any street with a stream, watercourse, drain, or railway, and

the acquisition of any land or easement required for that purpose.

(3) Any improvement incidental to the carrying out of an urban renewal project,

the issuance of bonds for which is authorized by subsection 4 of section

40-58-13.

b. This section may not be deemed to prevent a municipality from appropriating

funds for or financing out of taxes, special assessments, or utility revenues any

work incidental to an improvement, in the manner and to the extent otherwise

permitted by law.

5. The governing body of any city may, by resolution adopted by a two-thirds vote,

dedicate the mill levy authorized by section 57-15-42 and authorize and issue general

obligation bonds to be paid by the dedicated levy for the purpose of providing funds for

the purchase, construction, reconstruction, or repair of public buildings or fire stations;

provided, that the initial resolution authorizing the mill levy dedication and general

obligation bonds must be published in the official newspaper, and any owner of taxable

property within the city may, within sixty days after publication, file with the city auditor

a protest against the adoption of the resolution.

a. Protests must be in writing and must describe the property that is the subject of

the protest.

b. If the governing body finds the protests to have been signed by the owners of

taxable property having an assessed valuation equal to five percent or more of

the assessed valuation of all taxable property within the city, as last finally

equalized, all further proceedings under the initial resolution are barred.

6. The governing body of any county may, by resolution adopted by a two-thirds vote,

dedicate the tax levies authorized by section 57-15-06.6 and subsection 5 of section

57-15-06.7 and authorize and issue general obligation bonds to be paid by the

dedicated levy for the purposes identified under section 57-15-06.6 and subsection 5

of section 57-15-06.7; provided, that the initial resolution authorizing the tax levy

dedication and general obligation bonds must be published in the official newspaper,

and any owner of taxable property within the county may, within sixty days after

publication, file with the county auditor a protest against the adoption of the resolution.

a. Protests must be in writing and describe the property that is the subject of the

protest.

b. If the governing body finds the protests to have been signed by the owners of

taxable property having an assessed valuation equal to five percent or more of

the assessed valuation of all taxable property within the county, as last finally

equalized, all further proceedings under the initial resolution are barred.

7. The governing body of any public school district may, by resolution adopted by a

two-thirds vote, dedicate the tax levies as authorized by section 15.1-09-47,

15.1-09-49, or 57-15-16 and authorize and issue general obligation bonds to be paid

by these dedicated levies for the purpose of providing funds for the purchase,

construction, reconstruction, or repair of public school buildings or for the construction

or improvement of a project under section 15.1-36-02 or 15.1-36-08.

a. The initial resolution authorizing the tax levy dedication and general obligation

bonds must be published in the official newspaper of the school district, and any

owner of taxable property within the school district may, within sixty days after

publication, file with the business manager of the school district a protest against

the adoption of the resolution.

b. Protests must be in writing and describe the property that is the subject of the

protest.

c. If the governing body finds the protests have been signed by the owners of

taxable property having an assessed valuation equal to five percent or more of

the assessed valuation of all taxable property within the school district, as last

finally equalized, all further proceedings under the initial resolution are barred.

8. The governing body of any city having a population of twenty-five thousand persons or

more may use the provisions of subsection 3 to provide funds to participate in the cost

of any construction, improvement, financing, and planning of any bypass routes,

interchanges, or other intersection improvements on a federal or state highway system

which is situated in whole or in part outside of the corporate limits of the city; provided,

that the governing body of the city shall determine by resolution that the undertaking of

the work is in the best interest of the city for the purpose of providing access and

relieving congestion or improving traffic flow on municipal streets.

9. The governing body of a municipality or other political subdivision, located at least in

part within a county that is included within a disaster or emergency executive order or

proclamation of the governor under chapter 37-17.1, may by resolution adopted by a

two-thirds vote authorize and issue general obligation bonds of the political subdivision

without an election for the purpose of providing funds to pay costs associated with the

emergency condition. The political subdivision may dedicate and levy taxes for

retirement of bonds under this subsection and the levies are not subject to limitations

as otherwise provided by law.

10. The governing board of any county, city, public school district, park district, or township

may, by resolution adopted by a two-thirds vote, dedicate the tax levy authorized by

section 57-15-41 and authorize and issue general obligation bonds to be paid by the

dedicated levy for the purpose of providing funds to prepay outstanding special

assessments made in accordance with the provisions of title 40 against property

owned by the county, city, public school district, park district, or township.

11. The governing body of any park district that constitutes a distinct municipality may

issue general obligation bonds of the park district for the purpose of providing funds to

acquire, lay out, and improve parks, parkways, boulevards, and pleasure drives, and

to acquire land for these purposes, but the indebtedness may not at any time exceed

one percent of the assessed valuation of the taxable property in the park district.

a. The initial resolution authorizing the issuance of general obligation bonds under

this subsection must be published in the official newspaper of the park district,

and any owner of taxable property within the park district may, within sixty days

after publication, file with the clerk of the park district a protest against the

adoption of the resolution.

b. Protests must be in writing and describe the property that is the subject of the

protest.

c. If the governing body finds the protests have been signed by the owners of

taxable property having an assessed valuation equal to five percent or more of

the assessed valuation of all taxable property within the park district, as last

finally equalized, all further proceedings under the initial resolution are barred.
N.D. Cent. Code § 21-12-02 — ND Code / Title 21 / Chapter 21-12 / Section 21-12-02
21-12-02. Allocation of ceiling
Status: in_force

21-12-02. Allocation of ceiling

In lieu of the formula set out in the Tax Reform Act for allocating the ceiling among the

state's governmental units, the governor shall, by executive order or proclamation, establish a

different allocation formula which may allocate to a governmental unit a portion of the ceiling or

may establish a procedure for a governmental unit to apply to the governor's office for an

allocation by the governor within the ceiling. The application established by the governor may

include a request for the following information:

1. The name of the governmental unit applying for an allocation of the ceiling.

2. A description of the governmental unit's proposed project or purpose for which the

private activity bonds are intended to be issued.

3. The location of the project authorized by the governmental unit.

4. The name and address of the project owner or operator and all principal users of the

project or the manager or director of the program which is the purpose for which the

private activity bonds are to be issued.

5. A certified copy of the inducement resolution adopted by the governmental unit under

the Tax Reform Act approving the project or purpose and granting preliminary

authorization for the issuance of the private activity bonds, or other preliminary

approval of the issuance of the private activity bonds which is comparable to an

inducement resolution.

6. A preliminary opinion of a qualified bond counsel which states that the proposed bond

issue qualifies as a private activity bond under applicable federal law and, if the private

activity bonds are issued, that the bonds must be within the ceiling for the interest on

the bonds to be exempt from federal income taxation under the Tax Reform Act.

7. Evidence that all public hearing requirements concerning the proposed project or

purpose have been met under state law and the Tax Reform Act.

8. The allocation of the ceiling requested by the governmental unit.
N.D. Cent. Code § 21-07-01 — ND Code / Title 21 / Chapter 21-07 / Section 21-07-01
21-07-01. County auditor to deliver to county treasurer schedule of municipal tax levies for sinking funds
Status: in_force

21-07-01. County auditor to deliver to county treasurer schedule of municipal tax

levies for sinking funds.

Each county auditor shall deliver to the county treasurer of the county at the time the tax

lists are delivered to the county treasurer as provided by section 57-20-06, a separate detailed

schedule showing separately the amount of tax and the mill rate of levy therefor for each

separate levy for sinking fund certified to the county auditor by the various municipalities partly

or wholly within the county, including levies for sinking funds for bonds issued by the county,

each stated separately. A true and correct duplicate thereof must be kept by such county auditor

among the permanent records of the county auditor's office.
N.D. Cent. Code § 21-03-31 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-31
21-03-31. Notice to state or state departments
Status: repealed

21-03-31. Notice to state or state departments

Repealed by S.L. 1993, ch. 239, § 9.
N.D. Cent. Code § 21-03-47 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-47
21-03-47. Limitation of action
Status: in_force

21-03-47. Limitation of action

No action may be brought or maintained in any court in this state questioning the validity of

any bonds issued pursuant to this chapter, or of any tax levied pursuant hereto, unless such

action has been commenced within thirty days after the adoption of the resolution of the

governing body awarding the sale of such bonds.
N.D. Cent. Code § 21-05-08 — ND Code / Title 21 / Chapter 21-05 / Section 21-05-08
21-05-08. Penalty for auditing account not itemized
Status: in_force

21-05-08. Penalty for auditing account not itemized

Any person, whether or not acting as a member of any board, who audits and allows any

account, claim, or demand against any county or township required to be itemized, without

having the same first duly itemized, is guilty of a class B misdemeanor.
N.D. Cent. Code § 21-04-05 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-05
21-04-05. Financial institution - Designation as depository
Status: in_force

21-04-05. Financial institution - Designation as depository

Any financial institution duly incorporated in this state under and pursuant to the laws

governing the incorporation of financial institutions, and any financial institution situated and

doing business within this state, and the Bank of North Dakota, may be designated a depository

of public funds by the proper board as herein defined. The board may select two or more

financial institutions in the same county as depositories, but if more than one financial institution

is designated, the board shall deal with the financial institutions selected and designated

impartially, both as to the deposit of funds and the withdrawal of funds and the requirement as to

bonds. The board shall take into consideration, in selecting and designating the depository or

depositories, the condition of each financial institution and the capital, surplus, and general

credit thereof.
N.D. Cent. Code § 21-02.1-05 — ND Code / Title 21 / Chapter 21-02.1 / Section 21-02.1-05
21-02.1-05. Powers of court upon trial - Amendment of petition
Status: in_force

21-02.1-05. Powers of court upon trial - Amendment of petition

At the time and place for the hearing, the court shall find and determine whether the notice

of the filing of the petition has been published. When the court has determined that it has

jurisdiction to hear the petition, it shall proceed with the hearing and shall conduct the hearing

as in the case of a trial of a civil action without a jury. The court shall examine into and

determine the legality and validity of the proceedings and all matters affecting the legality or

validity of proceedings for the issuance or payment of the evidence of indebtedness. The court

shall disregard any error, irregularity, or omission which does not affect the substantial rights of

the parties to the hearing. The court shall permit the petition to be amended so as to conform to

the evidence and facts presented at the hearing.
N.D. Cent. Code § 21-04-23 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-23
21-04-23. Penalty
Status: in_force

21-04-23. Penalty

Any person violating any of the provisions of this chapter is guilty of a class A misdemeanor.
N.D. Cent. Code § 21-03-21 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-21
21-03-21. Execution of bonds
Status: repealed

21-03-21. Execution of bonds

Municipal bonds must be executed in the name of and for the municipality issuing them, by

its qualified officers, who for that purpose shall sign the same by manual or facsimile signatures

in their official capacities, as follows:

1. For a county, the chairman of the board of county commissioners and the county

auditor.

2. For a city, the mayor or president of the board of city commissioners and the city

auditor.

3. Repealed by S.L. 1967, ch. 323, § 285.

4. For any other municipality, the chairman or president of the governing board and the

clerk or secretary thereof, or such other officer as the governing body thereof may

determine.

The interest coupons attached to such bonds may be executed by the lithographed or engraved

facsimile signature of such officers. The validity of every bond so executed remains unimpaired

by the fact that any subscribing officer has ceased to be such officer before delivery to the

purchaser. Bonds issued by a municipality having an official seal need not be sealed with such

seal. The city auditor, county auditor, clerk, or secretary or such other officer as the governing

body of the municipality may determine shall sign an endorsement on the back of each bond

certifying that the bond is issued pursuant to law and is within the debt limit of the municipality

issuing the bond.
N.D. Cent. Code § 21-04-16 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-16
21-04-16. When no bonds are required
Status: in_force

21-04-16. When no bonds are required

Whenever it appears that a bank designated by a public corporation as depository of its

funds has complied with the provisions of the act of Congress relating to the guaranty of

deposits in state and national banks, no bond may be required of said bank to secure the

deposits of any part of said public funds up to the amount the deposit is secured in said bank

under said federal act.
N.D. Cent. Code § 21-04-13 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-13
21-04-13. Board meetings - Designating depositories
Status: in_force

21-04-13. Board meetings - Designating depositories

The governing board of any public corporation, except the board of supervisors of any

township and the school board of any common school district, at its regular meeting in January

of each even-numbered year, shall assemble and examine all outstanding bonds and require

new bonds whenever necessary in order to comply with the provisions of this chapter. If no

regular meeting of the board in January is required by any other law, the board shall assemble

for said purpose not later than the third Tuesday in January. At such meeting, the board shall

designate depositories of public funds in accordance with the provisions of this chapter.
N.D. Cent. Code § 21-04-24 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-24
21-04-24. All public funds are governed by provisions of chapter
Status: in_force

21-04-24. All public funds are governed by provisions of chapter

Any board, commission, bureau, or individual having the legal custody of any public funds

that do not expressly or by name come within the provisions of the preceding sections of this

chapter, nevertheless must be governed by the provisions of this chapter. They shall deposit

such funds only in legal depositories and shall comply with the other provisions hereof as nearly

as may be. They are subject to the penalties herein provided.
N.D. Cent. Code § 21-03-19 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-19
21-03-19. Bonds - Terms
Status: in_force

21-03-19. Bonds - Terms

Bonds issued under this chapter must be authorized by resolution, bear such date or dates,

be in such denomination or denominations, be in such form, be subject to redemption with or

without premium, and be subject to such other terms or conditions as in the judgment of the

municipality are in the public interest of the municipality, and must provide that the last

installment of principal falls due not more than twenty years from the date of the bonds. The

requirements of this section apply to each new issue of bonds, or if so determined by the

governing body, to the bonds of a new issue combined with all of the outstanding bonds of one

or more designated issues of bonds previously issued and similarly payable from taxes or other

sources of revenues, or both, as the case may be.
N.D. Cent. Code § 21-04-04 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-04
21-04-04. Money deposited promptly - Withdrawal - Penalty
Status: in_force

21-04-04. Money deposited promptly - Withdrawal - Penalty

The treasurer of a public corporation and every other person legally charged with the

custody of public funds, which, according to the provisions of this chapter, must be deposited in

the Bank of North Dakota or in a depository duly designated as provided in this chapter,

promptly upon receipt of such funds, shall deposit the same in such depository. All such public

funds must be deposited in the name of the state, state institution, or public corporation to which

the same belong. Checks or drafts on funds deposited as herein provided must be drawn by the

legal custodian thereof in the legal custodian's official capacity only, and no checks or drafts on

such deposits may be paid or honored by such depository unless so drawn.
N.D. Cent. Code § 21-01-11 — ND Code / Title 21 / Chapter 21-01 / Section 21-01-11
21-01-11. Failure to register warrants - Liability of treasurer
Status: in_force

21-01-11. Failure to register warrants - Liability of treasurer

The treasurer of any taxing district who fails to register any warrant in the order of its

presentation, or to pay the same in the order of its registration, is liable on the treasurer's official

bond to each and every person the payment of whose warrant is postponed thereby, in the sum

of three hundred dollars, to be recovered in a civil action.
N.D. Cent. Code § 21-06-06 — ND Code / Title 21 / Chapter 21-06 / Section 21-06-06
21-06-06. Procedure for destruction of documents
Status: repealed

21-06-06. Procedure for destruction of documents

Repealed by S.L. 2015, ch. 140, § 4.
N.D. Cent. Code § 21-02.1-06 — ND Code / Title 21 / Chapter 21-02.1 / Section 21-02.1-06
21-02.1-06. Conclusion of hearing - Findings - Decree - Costs of hearing - Filing copies of findings
Status: in_force

21-02.1-06. Conclusion of hearing - Findings - Decree - Costs of hearing - Filing

copies of findings.

Upon the conclusion of the hearing the court shall determine the legality and validity of the

proceedings for the issuance or payment of the evidence of indebtedness and shall determine

the validity and legality of any other matter properly before the court. The court shall prepare its

findings of fact and conclusions of law and shall order that the decree of the court be entered.
N.D. Cent. Code § 21-03-49 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-49
21-03-49. Penalty for diversion of borrowed money fund
Status: repealed

21-03-49. Penalty for diversion of borrowed money fund

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 21-03-24 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-24
21-03-24. Destruction of bonds not sold within three years
Status: in_force

21-03-24. Destruction of bonds not sold within three years

All bonds authorized pursuant to this chapter which are not delivered to the purchaser and

paid for within three years of their date must be canceled. The registering and certifying officer,

in the presence of at least two electors of the municipality which authorized their issuance, shall

destroy such bonds by the burning thereof, and with such witnesses shall make and file in the

records of that officer's office an affidavit as to the bonds so destroyed and the time and place of

such destruction. The officer also shall make a record thereof in a proper book of record in that

officer's office. A copy of such affidavit must be filed with the auditor or secretary of the

municipality which authorized their issuance.
N.D. Cent. Code § 21-02.1-01 — ND Code / Title 21 / Chapter 21-02.1 / Section 21-02.1-01
21-02.1-01. Proceedings to judicially confirm evidence of indebtedness proceedings
Status: in_force

21-02.1-01. Proceedings to judicially confirm evidence of indebtedness proceedings

Any political subdivision of the state authorized to issue evidence of indebtedness, prior to

or subsequent to adoption of any or all of the proceedings regarding the issuance of that

evidence of indebtedness or proceedings relating to the payment of that evidence of

indebtedness may commence a special proceeding in district court to have those proceedings

judicially examined, approved, and confirmed or disapproved.
N.D. Cent. Code § 21-03-03.1 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-03.1
21-03-03.1. Validation of certain school district bond issues
Status: in_force

21-03-03.1. Validation of certain school district bond issues

Omitted.
N.D. Cent. Code § 21-02-10 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-10
21-02-10. Taxing districts exempt from certain provisions
Status: repealed

21-02-10. Taxing districts exempt from certain provisions

Repealed by S.L. 1997, ch. 221, § 10.
N.D. Cent. Code § 21-06-01 — ND Code / Title 21 / Chapter 21-06 / Section 21-06-01
21-06-01. Duplicate obligation - Issuance
Status: in_force

21-06-01. Duplicate obligation - Issuance

A duplicate of any bond, warrant, interest coupon, or other obligation of the state or of any

political subdivision thereof may be issued if such obligation:

1. Becomes so mutilated or defaced as to be unfit for circulation and the same is

surrendered and canceled; or

2. Is lost or destroyed.

Such duplicate must be issued to the owner, must be marked "duplicate", and must correspond

with the canceled or lost obligation in number, date, amount, and unpaid coupons, and must be

signed by the proper officers who then are in office.
N.D. Cent. Code § 21-03.1-09 — ND Code / Title 21 / Chapter 21-03.1 / Section 21-03.1-09
21-03.1-09. Public records - Locations
Status: in_force

21-03.1-09. Public records - Locations

1. Records, with regard to the ownership of or security interests in registered public

obligations, are not subject to inspection or copying under any law of this state relating

to the right of the public to inspect or copy public records, notwithstanding any law to

the contrary.

2. Registration records of the issuer may be maintained at such locations within or

without this state as the issuer shall determine.
N.D. Cent. Code § 21-05-07 — ND Code / Title 21 / Chapter 21-05 / Section 21-05-07
21-05-07. Consideration of account - Action thereon
Status: in_force

21-05-07. Consideration of account - Action thereon

Whenever an account, claim, or demand against any township or county is reviewed in the

manner prescribed in section 21-05-01, the board to which the same is presented may receive

and consider the same and may allow or disallow the same, in whole or in part, as to the board

appears just and lawful, saving to such claimant the right of appeal in accordance with the

procedure provided in section 28-34-01. Approval by the board must be recorded in the record

of its proceedings and this is sufficient to indicate approval without requiring a majority of the

members of the board to sign or initial the voucher or order for payment.
N.D. Cent. Code § 21-12-04 — ND Code / Title 21 / Chapter 21-12 / Section 21-12-04
21-12-04. Requirements of allocations
Status: in_force

21-12-04. Requirements of allocations

The governor may establish, by executive order or proclamation, other procedures and

requirements for the proper allocation of the ceiling, which may include the following:

1. The procedure for notification of approval or disapproval of application for an

allocation.

2. The period during which the private activity bonds must be issued under an allocation

and a procedure for applying for an extension of that period.

3. A procedure for authorizing a carryforward to a governmental unit of all or a portion of

the excess of North Dakota's ceiling for any calendar year over the aggregate amount

of tax-exempt private activity bonds actually issued during that calendar year by

governmental units, to the extent and for the period for which a purpose is eligible to

be treated as a carryforward project under the Tax Reform Act.

4. Whether an allocation validly granted may be transferred between projects and

purposes by governmental units.

5. A procedure for reapplication if a request for an allocation by a governmental unit has

been disapproved.

6. A procedure for recapturing an allocation for which the period during which the

allocation is valid has expired.

7. Any additional procedures or requirements which the governor determines to be

necessary for the proper administration and to carry out the purposes of this chapter.
N.D. Cent. Code § 21-13-04 — ND Code / Title 21 / Chapter 21-13 / Section 21-13-04
21-13-04. Delinquent loans
Status: in_force

21-13-04. Delinquent loans

If designated revenues are not sufficient to pay a loan balance, in addition to the designated

revenues, the political subdivision may set aside up to ten percent of the amount of the

collections from current tax revenues to pay to the lending bank or credit union on a monthly

basis until the delinquent loans have been paid in full.
N.D. Cent. Code § 21-10-11 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-11
21-10-11. Legacy and budget stabilization fund advisory board
Status: in_force

21-10-11. Legacy and budget stabilization fund advisory board

1. The legacy and budget stabilization fund advisory board is created to develop

recommendations for the investment of funds in the legacy fund and the budget

stabilization fund to present to the state investment board.

2. The goal of investment for the legacy fund is principal preservation and growth while

maximizing total return for an appropriate level of risk and to provide a direct benefit to

the state by investing a portion of the principal in the state. Preference must be given

to qualified investment firms and financial institutions with a presence in the state for

investment of the legacy fund.

3. The board shall determine the asset allocation for the investment of the principal of the

legacy fund including:

a. A target allocation of seven hundred million dollars to fixed income investments

within the state, including:

(1) Up to one hundred fifty million dollars for infrastructure loans to political

subdivisions under section 6-09-49.1. The net return to the legacy fund

under this paragraph must be fixed at a target rate of one and one-half

percent;

(2) A minimum of four hundred million dollars for the Bank of North Dakota's

certificate of deposit match program with an interest rate fixed at the

equivalent yield of United States treasury bonds having the same term, up

to a maximum term of twenty years; and

(3) Other qualified fixed income investments within the state based on

guidelines developed by the legacy and budget stabilization fund advisory

board.

b. A target allocation of six hundred million dollars to equity investments in the state,

including:

(1) Investments in one or more equity funds, venture capital funds, or

alternative investment funds with a primary strategy of investing in emerging

or expanding companies in the state. Equity investments under this

paragraph must:

(a) Be managed by qualified investment firms, financial institutions, or

equity funds which have a strategy to invest in qualified companies

operating or seeking to operate in the state and which have a direct

connection to the state; and

(b) Have a benchmark investment return equal to the five-year average

net return for the legacy fund, excluding in-state investments; and

(2) Other eligible investments under this subdivision based on guidelines

developed by the legacy and budget stabilization fund advisory board.

4. The board consists of three members of the senate appointed by the senate majority

leader, three members of the house of representatives appointed by the house

majority leader, the president of the Bank of North Dakota or designee, the tax

commissioner or designee, the director of the office of management and budget or

designee, and the state treasurer or designee. The board shall select a member from

the senate or house of representatives to serve as chairman for no more than one

consecutive year and must meet at the call of the chairman.

5. The board shall report at least semiannually to the budget section.

6. Legislative members are entitled to receive compensation and expense

reimbursement as provided under section 54-03-20 and reimbursement for mileage as

provided by law for state officers. The legislative council shall pay the compensation

and expense reimbursement for the legislative members.

7. The legislative council shall provide staff services to the legacy and budget

stabilization fund advisory board.

8. The staff and consultants of the state retirement and investment office shall advise the

board in developing asset allocation and investment policies.

9. The board may develop a process to select a member of the board who is not a

member of the state investment board to serve on the state investment board in a

nonvoting capacity.
N.D. Cent. Code § 21-03-09 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-09
21-03-09. Initial resolution - Form
Status: in_force

21-03-09. Initial resolution - Form

Proceedings for the issuance of bonds under the authority of this chapter must be instituted

by the adoption of an initial resolution therefor. Such initial resolution must state:

1. The maximum amount of bonds proposed to be issued.

2. The purpose for which they are proposed to be issued.

3. The assessed valuation of all taxable property in the municipality as defined in section

21-03-01.

4. The total amount of bonded indebtedness of the municipality.

5. The amount of outstanding bonds of the municipality issued for a similar purpose.

6. Any other statement of fact deemed advisable by the governing body or voters

proposing the same.
N.D. Cent. Code § 21-02-12 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-12
21-02-12. Unlawful for officer to accept compensation from bidder
Status: repealed

21-02-12. Unlawful for officer to accept compensation from bidder

Repealed by S.L. 1997, ch. 221, § 10.
N.D. Cent. Code § 21-04-22 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-22
21-04-22. Funds deposited - Custodian exonerated
Status: in_force

21-04-22. Funds deposited - Custodian exonerated

To the extent that public funds are deposited as provided in this chapter, the legal custodian

thereof, and the sureties on the legal custodian's bond, are exempt from all liability by reason of

loss of any such funds from failure or other act of any such depository.
N.D. Cent. Code § 21-04-18 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-18
21-04-18. Interest or dividend rates
Status: in_force

21-04-18. Interest or dividend rates

Depositories of public funds in this state shall pay substantially the same rate of interest or

dividend thereon as such financial institutions pay upon individual deposits.
N.D. Cent. Code § 21-03-26 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-26
21-03-26. Bonds - Call for bids - How advertised
Status: in_force

21-03-26. Bonds - Call for bids - How advertised

A notice calling for bids for each proposed issue of municipal bonds must be published at

least once in the official newspaper of the municipality, or, if the municipality does not have an

official newspaper, then in the county's official newspaper, not less than ten days nor more than

thirty days before the date specified therein for the receiving of such bids. Such notice may be in

any form but must specify the amount of bonds offered for sale and the date of the maturity

thereof. Failure to publish such notice does not impair the validity of such bonds but renders

unenforceable any executory contract entered into for the sale thereof.
N.D. Cent. Code § 21-02-01 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-01
21-02-01. Definitions
Status: in_force

21-02-01. Definitions

In this chapter unless the context or subject matter otherwise requires:

1. "Political subdivision" means a local governmental unit created by statute or by the

Constitution of North Dakota for local governmental or other public purposes.

2. "Revenues" means any of the following:

a. Uncollected taxes.

b. Amounts to be received from a distribution of federal moneys, including currently

existing bureau of Indian affairs contracts.

c. Amounts to be received from a distribution of moneys pursuant to a state

appropriation or a state statutory or constitutional provision.

d. Amounts to be received from a grant or loan of state or federal funds.

e. Amounts to be received from the issuance and sale of obligations by a political

subdivision.

3. "Uncollected taxes" means taxes for the year during which a certificate of

indebtedness is issued and the preceding four years that have been levied but from

which moneys have not come into the public treasury by payment or by satisfaction of

tax lien, exclusive of tax levies dedicated to the payment of principal of and interest on

outstanding evidences of indebtedness.
N.D. Cent. Code § 21-06-08 — ND Code / Title 21 / Chapter 21-06 / Section 21-06-08
21-06-08. Authority to contract with the federal government - Delegation of authority
Status: in_force

21-06-08. Authority to contract with the federal government - Delegation of authority

The state or any department, division, bureau, commission, board, authority, agency or

political subdivision thereof, may enter into any contract with the United States of America or

with any agency thereof for the purchase or lease of any equipment, supplies, materials, or

other property without regard to provisions of law which require:

1. The posting of notices or public advertising for bids or of expenditures.

2. The inviting or receiving of competitive bids.

3. The delivery of purchases before payment.

4. The payment of the cost of the contract out of funds theretofore included in the budget

of appropriations for the year; provided, however, that the governing body or executive

authority, as the case may be of any department, division, bureau, commission, board,

authority, agency, or political subdivision of the state may designate by appropriate

resolution or order any official or employee of its own to enter a bid or bids in its behalf

at any sale of any equipment, supplies, materials, or other property owned by the

United States of America or any agency thereof, and may authorize said person to

make any downpayment, or payment in full, required in connection with such bidding.
N.D. Cent. Code § 21-02-06 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-06
21-02-06. Certifying amount of uncollected taxes
Status: in_force

21-02-06. Certifying amount of uncollected taxes

The county auditor, upon request of the officers of a political subdivision, shall certify to

them the amount of uncollected taxes remaining upon the tax lists to the credit of the political

subdivision on the last day of the preceding month, and annually shall certify such information to

the clerk of each township on February fifteenth, to the auditor of each city on September tenth,

and to the business manager of each school district on July tenth. The county auditor also shall

certify to the clerk, auditor, business manager, or secretary, or equivalent officer, of each political

subdivision, at the time of making the monthly apportionment of funds, the amount of cash

collections apportioned for that month to the political subdivision and the amount derived from

levies of each tax year.
N.D. Cent. Code § 21-02-07 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-07
21-02-07. Authorizing resolution - Sinking fund
Status: in_force

21-02-07. Authorizing resolution - Sinking fund

When a political subdivision issues a certificate of indebtedness under this chapter, the

political subdivision, by resolution authorizing the issuance of the certificate of indebtedness,

shall establish a sinking fund for the retirement of the certificate of indebtedness, including

interest, on its due date. The resolution must also provide for the regular accumulation of money

in the sinking fund from the revenues pledged to the payment of the certificate of indebtedness.

Upon the accumulation of sufficient money in the sinking fund to pay the principal and interest

which will be due and owing on the maturity date of the certificate of indebtedness, no additional

revenues may be credited to the sinking fund.
N.D. Cent. Code § 21-03.1-11 — ND Code / Title 21 / Chapter 21-03.1 / Section 21-03.1-11
21-03.1-11. Construction
Status: in_force

21-03.1-11. Construction

This chapter must be construed in conjunction with the Uniform Commercial Code and the

principles of contract law relative to the registration and transfer of obligations.
N.D. Cent. Code § 21-03-40 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-40
21-03-40. Sinking funds - Custodian
Status: in_force

21-03-40. Sinking funds - Custodian

The city auditor, park district treasurer, or business manager of the school district or

similarly acting officer of the respective municipality is custodian of each of its sinking funds,

unless the governing body by resolution appoints the county treasurer.
N.D. Cent. Code § 21-10-07 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-07
21-10-07. Legal investments
Status: in_force

21-10-07. Legal investments

The state investment board shall apply the prudent investor rule in investing for funds under

its supervision. The "prudent investor rule" means that in making investments the fiduciaries

shall exercise the judgment and care, under the circumstances then prevailing, that an

institutional investor of ordinary prudence, discretion, and intelligence exercises in the

management of large investments entrusted to it, not in regard to speculation but in regard to

the permanent disposition of funds, considering probable safety of capital as well as probable

income. The retirement funds belonging to the teachers' fund for retirement and the public

employees retirement system must be invested exclusively for the benefit of their members and

in accordance with the respective funds' investment goals and objectives.
N.D. Cent. Code § 21-03-29 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-29
21-03-29. Unlawful for official to accept compensation from bidder
Status: in_force

21-03-29. Unlawful for official to accept compensation from bidder

No auditor, secretary, or other official of a municipality may accept, from a bidder or

prospective bidder at a sale of bonds, a commission or any other compensation for the official's

services rendered or to be rendered in connection with the issuance, sale, or delivery of such

bonds.
N.D. Cent. Code § 21-03.1-10 — ND Code / Title 21 / Chapter 21-03.1 / Section 21-03.1-10
21-03.1-10. Applicability - Determination
Status: in_force

21-03.1-10. Applicability - Determination

1. Unless at any time prior to or at original issuance of a registered public obligation the

official or official body of the issuer determines otherwise, this chapter is applicable to

such registered public obligation notwithstanding any provision of law to the contrary.

When this chapter is applicable, no contrary provision applies.

2. Nothing in this chapter limits or prevents the issuance of obligations in any other form

or manner authorized by law.

3. Unless determined otherwise pursuant to subsection 1, the provisions of this chapter

are applicable with respect to obligations which have heretofore been approved by

vote, referendum, or hearing, authorizing or permitting the authorization of obligations

in bearer and registered form, or in bearer form only, and such obligations need not be

resubmitted for a further vote, referendum, or hearing, for the purpose of authorizing or

permitting the authorization of registered public obligations pursuant to this chapter.
N.D. Cent. Code § 21-10-01 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-01
21-10-01. State investment board - Membership - Term - Compensation - Advisory council
Status: in_force

21-10-01. State investment board - Membership - Term - Compensation - Advisory

council.

1. The North Dakota state investment board consists of:

a. The governor;

b. The state treasurer;

c. The commissioner of university and school lands;

d. The director of workforce safety and insurance;

e. The director of the office of management and budget;

f. Two members of the teachers' fund for retirement board or the board's designees

who need not be members of the fund as selected by that board;

g. Two members of the public employees retirement system board as selected by

that board;

h. Two members, each of whom by experience is familiar with institutional

investments, appointed by the governor. One initial appointee shall serve a term

of three years, one initial appointee shall serve a term of five years, and all

subsequent appointees shall serve five-year terms; and

i. Two members, one from the senate and one from the house of representatives,

or the member's designee, who serve on the legacy and budget stabilization fund

advisory board, as selected by that board to represent that board.

2. The director of workforce safety and insurance may appoint a designee, subject to

approval by the workforce safety and insurance board of directors, to attend the

meetings, participate, and vote when the director is unable to attend. The teachers'

fund for retirement board may appoint an alternate designee with full voting privileges

to attend meetings of the state investment board when a selected member is unable to

attend. The public employees retirement system board may appoint an alternate

designee with full voting privileges from the public employees retirement system board

to attend meetings of the state investment board when a selected member is unable to

attend.

3. The members of the state investment board, except elected and appointed officials

and the director of workforce safety and insurance or the director's designee, are

entitled to receive as compensation one hundred forty-eight dollars per day and

necessary mileage and travel expenses as provided in sections 44-08-04 and

54-06-09 for attending meetings of the state investment board.

4. The state investment board may establish an advisory council composed of individuals

who are experienced and knowledgeable in the field of investments. The state

investment board shall determine the responsibilities of the advisory council. Members

of the advisory council are entitled to receive the same compensation as provided the

members of the advisory board of the Bank of North Dakota and necessary mileage

and travel expenses as provided in sections 44-08-04 and 54-06-09.
N.D. Cent. Code § 21-03-10 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-10
21-03-10. Initial resolution - How adopted
Status: in_force

21-03-10. Initial resolution - How adopted

The initial resolution may be:

1. Adopted by a majority vote of the governing body at any regular meeting thereof or at

any special meeting of which notice has been given as required by law, without any

previous action thereon or request therefor by the qualified electors or property

owners.

2. Proposed by filing a copy thereof in the office of the auditor or secretary of the

municipality, together with a petition signed by qualified electors of the municipality

aggregating in number one-fourth of the number of qualified electors of the

municipality, as shown by the pollbook for the last preceding annual or general election

held therein, or if such pollbook was not kept, then as shown by a census of the

qualified electors of such municipality verified by the affidavit of one of such

petitioners. Such petition must ask that an election on the question of issuing such

bonds be called. Upon the filing of such proposed initial resolution and petition, the

governing body shall call such election in the manner specified by section 21-03-11.
N.D. Cent. Code § 21-04-09.1 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-09.1
21-04-09.1. Letters of credit for public deposits - Security interest - Priority - Written agreement
Status: in_force

21-04-09.1. Letters of credit for public deposits - Security interest - Priority - Written

agreement.

Letters of credit issued by the Bank of North Dakota in connection with section 21-04-09

must be secured by collateral. A security interest is created and attaches when the Bank issues

a letter of credit in connection with section 21-04-09. Filing is not required for perfection of the

security interest created and it is entitled to priority as to all creditors. The board of directors of a

financial institution seeking a letter of credit from the Bank shall execute a written agreement

with the Bank, reflect approval of the agreement in the board of director's minutes and, as of the

date of execution of the agreement, keep a copy of the agreement as an official record.
N.D. Cent. Code § 21-03-36 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-36
21-03-36. Money borrowed or payable to be lawful money of United States
Status: in_force

21-03-36. Money borrowed or payable to be lawful money of United States

All money borrowed by municipalities and all money received in payment of any tax levied

in accordance with this chapter is lawful money of the United States, and all municipal bonds

must be payable in such money.
N.D. Cent. Code § 21-03-37 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-37
21-03-37. Appointment of fiscal agents
Status: in_force

21-03-37. Appointment of fiscal agents

The governing body of any municipality indebted on account of outstanding municipal bonds

is authorized in its discretion to appoint a fiscal agent located in some city within or without the

state, or if deemed convenient, one such agent, in each of two cities. Every such fiscal agent

must be an incorporated bank or trust company authorized by the laws of the United States or of

the state in which it is located to do a banking or trust company business. The custodian of the

sinking funds of the municipality, when necessary, shall deposit with such fiscal agent such

sums of money as are required for the payment of the principal or interest of municipal bonds.
N.D. Cent. Code § 21-03-42 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-42
21-03-42. Sinking fund - Sources and uses
Status: in_force

21-03-42. Sinking fund - Sources and uses

The sinking fund must be disbursed by the county treasurer or treasurer of the municipality,

as the case may be, upon the directions therefor by resolution of the governing body of the

municipality issuing such bonds. As such bonds mature, the county treasurer, upon warrant

drawn upon the county treasurer by the county auditor, shall apply such sinking fund in

retirement thereof, and also in payment of the interest thereon as it becomes payable. The

county auditor shall draw such warrants so as to pay the interest and retire the bonds at as early

a date as possible. If the bonds are retired or if the balance in the sinking fund is sufficient to

retire the bonds, the county auditor shall notify the governing body of the municipality of its

obligation under section 21-03-15 to terminate the levy for payment of principal and interest on

the bonds. The county treasurer or treasurer of the municipality may not disburse any of such

fund contrary to the provisions of this chapter, even though so directed by such governing body.

The county treasurer or treasurer of the municipality may disburse such fund for the purpose of

paying the principal and interest, or either, of the bonds for which such fund was created without

any authorization therefor by the governing body. The sinking fund of each bond issue must be

kept separate and must be designated by a name indicative of the issue of bonds on account of

which it was created. The sources of such fund must be:

1. All moneys accruing to the borrowed money fund prescribed by section 21-03-38

which at any stage are not needed for the purpose for which the money was borrowed,

and any moneys becoming applicable to the sinking fund must be transmitted by the

treasurer of the municipality to the county treasurer, in case such municipality has a

population of four thousand or less, upon direction therefor by the governing body of

the municipality.

2. All moneys raised by taxation and received from other sources pursuant to section

21-03-15 for the purpose of paying said bond.

3. Moneys derived from licenses or other sources, the expenditure of which is not

otherwise provided for by law, as the governing body may elect to place in the sinking

fund, and which must be paid over to the county treasurer for deposit in such sinking

fund by the treasurer of the municipality, in case such municipality has a population of

four thousand or less, upon a resolution directing such payment by the governing

body.

4. The premium, if any, for which the bonds have been sold over and above the par value

and accrued interest.
N.D. Cent. Code § 21-10-09 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-09
21-10-09. Personal profit prohibited - Penalty
Status: in_force

21-10-09. Personal profit prohibited - Penalty

No member, officer, agent, or employee of the state investment board may profit in any

manner from transactions on behalf of the funds. Any person violating any of the provisions of

this section is guilty of a class A misdemeanor.
N.D. Cent. Code § 21-03-12 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-12
21-03-12. Notice of election to be given
Status: in_force

21-03-12. Notice of election to be given

The auditor, secretary, or similarly acting officer, by whatever name designated, of the

municipality shall give notice of election by causing a notice thereof to be published once each

week for at least two weeks prior to the date thereof in the official newspaper of such

municipality, if any, or if it has none, in any newspaper published therein, or if no newspaper is

published therein, then by posting copies of such notice in five public places in the municipality.

The date of such posting or first publication must be at least fifteen days before the date of such

election, exclusive of the day of such posting or first publication. Such notice must specify the

date, polling hours, and polling places of such election and must contain a complete copy of the

initial resolution and a statement that the question to be submitted thereat shall be whether said

initial resolution shall be approved. If said question is to be submitted at a municipal election,

the notice herein prescribed may be separate from the notice of such municipal election and

may refer to the notice of such municipal election for the designation of polling places.
N.D. Cent. Code § 21-02-14 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-14
21-02-14. Presumption of validity
Status: in_force

21-02-14. Presumption of validity

After issuance by a political subdivision, a certificate of indebtedness that recites that it is

issued under this chapter is conclusively presumed to be fully authorized and issued under the

laws of the state, and any person or governmental unit is estopped from questioning its

authorization, sale, execution, issuance, or delivery by the political subdivision.
N.D. Cent. Code § 21-09-05 — ND Code / Title 21 / Chapter 21-09 / Section 21-09-05
21-09-05. Application of chapter
Status: in_force

21-09-05. Application of chapter

The provisions of this chapter relating to validation apply to all bonds issued and

proceedings taken by any public body before July 1, 2009.
N.D. Cent. Code § 21-03-32 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-32
21-03-32. Departments prohibited from purchasing bonds at higher prices within five years
Status: repealed

21-03-32. Departments prohibited from purchasing bonds at higher prices within five

years.

Repealed by S.L. 1993, ch. 239, § 9.
N.D. Cent. Code § 21-04-12 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-12
21-04-12. Termination of depository relationship
Status: in_force

21-04-12. Termination of depository relationship

Whenever any depository financial institution desires to terminate the liability for any

deposits of any public corporation for which such depository has given a bond or pledged assets

for the repayment, it shall notify the board of the public corporation affected of such desire.

Thereupon such public corporation immediately shall withdraw such funds from such depository

and upon withdrawal, immediately shall release and surrender to such depository financial

institution, the bonds or securities which are pledged for the repayment of such deposit.
N.D. Cent. Code § 21-03-20 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-20
21-03-20. Interest - Ceases at maturity unless presented for payment
Status: in_force

21-03-20. Interest - Ceases at maturity unless presented for payment

All bonds issued pursuant to the provisions of this chapter must contain a provision that

interest thereon ceases at maturity unless the holder thereof presents the same for payment

and payment is refused.
N.D. Cent. Code § 21-05-02 — ND Code / Title 21 / Chapter 21-05 / Section 21-05-02
21-05-02. Accounts may be verified
Status: in_force

21-05-02. Accounts may be verified

The verification described in section 21-05-01 may be in substantially the following form:

Certificate

I do hereby certify that the within bill, claim, account, or demand is just and true; that the

money therein charged actually was paid for the purpose therein stated; that the services

therein charged actually were rendered and of the value therein charged, that no part of

such bill, claim, account, or demand has been paid; and that the goods therein charged

actually were delivered and were of the value charged.

Sign Here _________________________

_________________________

If signed for a firm or

company show authority

on this line.
N.D. Cent. Code § 21-04-20 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-20
21-04-20. Report of the treasurer
Status: repealed

21-04-20. Report of the treasurer

Repealed by S.L. 1967, ch. 193, § 1.
N.D. Cent. Code § 21-09-01 — ND Code / Title 21 / Chapter 21-09 / Section 21-09-01
21-09-01. Citation
Status: repealed

21-09-01. Citation

Repealed by S.L. 1981, ch. 277, § 2.
N.D. Cent. Code § 21-03.1-04 — ND Code / Title 21 / Chapter 21-03.1 / Section 21-03.1-04
21-03.1-04. Signatures
Status: in_force

21-03.1-04. Signatures

1. Any certificated registered public obligation signed by the authorized officers at the

time of the signing thereof remains valid and binding, notwithstanding that before the

issuance thereof any or all of such officers have ceased to fill their respective offices.

2. Any authorized officer empowered to sign any certificated registered public obligation

may adopt as and for the signature of such officer the signature of a predecessor in

office in the event that such predecessor's signature appears on such certificated

registered public obligation. An authorized officer incurs no liability by adoption of a

predecessor's signature that would not be incurred by such authorized officer if the

signature were that of such authorized officer.
N.D. Cent. Code § 21-03.1-03 — ND Code / Title 21 / Chapter 21-03.1 / Section 21-03.1-03
21-03.1-03. Execution - Authentication
Status: in_force

21-03.1-03. Execution - Authentication

1. A certificated registered public obligation must be executed by the issuer by the

manual or facsimile signature or signatures of authorized officers. Any signature of an

authorized officer may be attested by the manual or facsimile signature of another

authorized officer.

2. In addition to the signatures referred to in subsection 1, any certificated registered

public obligation or any writing relating to an uncertificated registered public obligation

may include a certificate or certificates signed by the manual or facsimile signature of

an authenticating agent, registrar, transfer agent, or the like.

3. At least one signature of an authorized officer or other person required or permitted to

be placed on a certificated registered public obligation must be a manual signature.
N.D. Cent. Code § 21-13-02 — ND Code / Title 21 / Chapter 21-13 / Section 21-13-02
21-13-02. Political subdivision authority to enter agreement for bank or credit union loans
Status: in_force

21-13-02. Political subdivision authority to enter agreement for bank or credit union

loans.

A political subdivision may borrow against its anticipated revenue, from a bank or credit

union located in this state. A bank or credit union loan and terms must be authorized by

resolution of the governing body for the political subdivision. The resolution must identify the

revenue to be used to repay the loan and any collateral that will secure repayment of the loan.

The loan agreement must be signed on behalf of the political subdivision by the president,

chairman, or equivalent officer, and also by the political subdivision's auditor, business manager,

secretary, or equivalent officer.
N.D. Cent. Code § 21-03-34 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-34
21-03-34. Registration of ownership of bonds - How made
Status: in_force

21-03-34. Registration of ownership of bonds - How made

The holder of any bond payable to "bearer or registered owner", as authorized by section

21-03-18, issued by any municipality, may have the ownership thereof registered as to the

principal thereof by the county auditor, or in the case of a municipality of over four thousand

population, by the auditor or secretary of the municipality issuing the same, or such other officer

as the governing body of the municipality may determine. Registration by such officers must be

made in the bond register and must be noted on the bond.
N.D. Cent. Code § 21-04-01 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-01
21-04-01. Definitions
Status: in_force

21-04-01. Definitions

In this chapter, unless the context or subject matter otherwise requires:

1. "Board" means the governing board of any public corporation, including the board of

county commissioners, the city council, the board of city commissioners, the school

board, the board of township supervisors, and the park board.

2. "Clerk" means the person who performs for any public corporation the duties ordinarily

performed by a clerk, including the county auditor, the city auditor, the township clerk,

and the business manager of the school district.

3. "Financial institutions" includes state and national banks insured by the federal deposit

insurance corporation, state-chartered or federally chartered savings and loans

insured by the federal savings and loan insurance corporation, and state-chartered or

federally chartered credit unions insured by the national credit union administration.

4. "Public corporation" includes a county, city, township, school district, and any body

corporate except a private corporation.

5. "Public funds" includes all funds derived from taxation, fees, penalties, sale of bonds,

or from any other source, which belong to and are the property of a public corporation

or of the state, and all sinking funds of such public corporation or of the state, and all

funds from whatever source derived and for whatever purpose to be expended of

which a public corporation or the state have legal custody. The term includes funds of

which any board, bureau, commission, or individual, created or authorized by law, is

authorized to have control as the legal custodian for any purpose whatsoever whether

such funds were derived from general or special taxation or the assessment of

persons or corporations for a specific purpose. The term does not include funds of

students or student organizations deposited in a student financial institution approved

by and under the control of the school board.

6. "State" includes the state of North Dakota and any institution, industry, enterprise, or

agency of the state.
N.D. Cent. Code § 21-10-06.3 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-06.3
21-10-06.3. Legacy fund disclosure website
Status: in_force

21-10-06.3. Legacy fund disclosure website

1. The state investment board shall maintain a publicly accessible website containing

information regarding all legacy fund investments.

2. The website must list all companies, funds, and other financial mechanisms in which

the legacy fund is invested in accordance with state and federal laws.

3. Within the limits of legislative appropriations, the state retirement and investment office

may spend moneys necessary for the development and maintenance of the website.
N.D. Cent. Code § 21-03-02 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-02
21-03-02. Provisions not applicable to certain issues
Status: in_force

21-03-02. Provisions not applicable to certain issues

This chapter is not applicable:

1. To issues of bonds, warrants, or other forms of public securities issued on account of

public improvements and for the payment of which special assessments are or shall

be levied upon and against property benefited thereby which do not constitute, at the

time of their issuance, a general obligation or fixed liability of the municipality issuing

the same, nor the portion of any such issue payable by general taxation on account of

assumption of a portion of the cost of such improvement under section 40-24-10 or

any similar law. Nothing in this subsection may be construed to prevent the issuance

of bonds by any city for the purposes specified in subdivision g of subsection 2 of

section 21-03-06.

2. To drainage bonds or irrigation bonds.

3. To borrowing of money in anticipation of tax collections by means of certificates of

indebtedness, as provided by chapter 21-02.

4. To revenue bonds under the provisions of chapter 40-35.

5. To bank or credit union loans authorized in title 21.
N.D. Cent. Code § 21-01-06 — ND Code / Title 21 / Chapter 21-01 / Section 21-01-06
21-01-06. Registration of warrants - Rate of interest
Status: in_force

21-01-06. Registration of warrants - Rate of interest

Whenever the law authorizes the officers of any taxing district to issue warrants in excess of

the amount of cash available in any fund upon which warrants are drawn for payment, the

treasurer of that taxing district, when any warrant is presented to the treasurer for payment, if

not paid for want of funds, shall endorse the same "Presented for payment on ____________,

_____, and not paid for want of funds", and thereupon shall enter the warrant in the treasurer's

warrant register in the order of presentation for registration. The governing body of a taxing

district authorizing the issuance of warrants in excess of cash on hand shall determine the rate

of interest which the warrants must bear, but in the case of counties and cities the rate may not

exceed eight percent per annum from the date of registration until the expiration of the time

specified for presentment for payment.
N.D. Cent. Code § 21-03-13 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-13
21-03-13. Ballot - Contents
Status: in_force

21-03-13. Ballot - Contents

The ballot for a bond election must be separate from other ballots used on the same day for

other elections, but the separate ballot may be on the same paper or electronic ballot. The ballot

must be written or printed, and must state the question in substantially the following form:

Shall the ________ (here inserting the name of the municipality) issue its bonds in the

amount of not to exceed $________, (here inserting the amount) maturing within a

maximum of __________, (here inserting the duration) resulting in an estimated

additional millage of _______ (here inserting the number of mills) mills, equal to

$______ (here inserting the equivalent in dollars) on each $1,000 of taxable valuation

for the first taxable year, for the purpose of ______________________ (here inserting

the purpose)?

Yes ☐

No ☐
N.D. Cent. Code § 21-03-41 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-41
21-03-41. Sinking funds - Duty of county treasurer
Status: in_force

21-03-41. Sinking funds - Duty of county treasurer

When the county treasurer is custodian of any sinking fund, the county treasurer may not

remit to the treasurer of the taxing district any taxes levied or any other moneys received for the

purpose of paying the interest on or retiring the principal of bonds issued, but the county

treasurer shall retain the same in a separate special fund maintained as a sinking and interest

fund for the bonds of such taxing district. The county treasurer shall make quarterly reports to

the treasurer of the taxing district whose sinking fund the county treasurer possesses, showing

all collections and amounts added to each such fund, all payments made from such fund, and

the net balance in each such fund from time to time. The county treasurer shall keep the sinking

funds of each taxing district on deposit in such public depository as may have furnished proper

bond therefor and as may have been designated by the governing board of the taxing district.

When a sinking fund is so deposited, the county treasurer is relieved of personal responsibility

for its safekeeping.
N.D. Cent. Code § 21-06-10 — ND Code / Title 21 / Chapter 21-06 / Section 21-06-10
21-06-10. Moneys received through leasing of lands acquired by United States for flood control distributed to counties for schools and roads
Status: in_force

21-06-10. Moneys received through leasing of lands acquired by United States for

flood control distributed to counties for schools and roads.

The state treasurer shall pay the moneys allocated to the state under 33 U.S.C. 701(c)(3) to

the counties entitled to receive them in proportion to the area of the land in the county acquired

by the United States for which compensation is being provided under 33 U.S.C. 701(c)(3) as

that area bears to the total of these federal lands in the state. A county receiving an allocation

under this section shall disburse the moneys received as follows:

1. One-half must be paid to the school districts in the county which have lost land subject

to taxation because of the acquisition of lands by the United States for which

compensation is being provided under 33 U.S.C. 701(c)(3) in proportion to the area of

these federal lands in each district as that area bears to the total of such lands in all of

the school districts in the county. If, however, all of the land in a district has been

acquired by the United States, that district's proportionate share of the funds allocated

under this subsection must be paid into the county tuition fund and expended

according to the law governing that fund.

2. One-quarter must be paid to the county for road purposes to be expended as the

county commissioners shall determine.

3. The final quarter must be allocated among the organized townships, if any, which have

lost land subject to taxation because of land acquisitions by the United States for

which compensation is being provided under 33 U.S.C. 701(c)(3) and the county for

road purposes in proportion to the area of these lands in each township as that area

bears to the total area of these federal lands in the county. The county must be

allocated a similar proportionate share based on the area of these lands in the county

not within an organized township.

This section applies to all funds heretofore received or to be received by the counties entitled

thereto.
N.D. Cent. Code § 21-03-11 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-11
21-03-11. Elections - When and how called and held
Status: in_force

21-03-11. Elections - When and how called and held

1. Upon or after the adoption of an initial resolution by the governing body, or at the first

meeting of the governing body held after the filing of a petition and proposed initial

resolution by the qualified electors as specified in subsection 2 of section 21-03-10,

the governing body by resolution shall submit the initial resolution to the qualified

electors of the municipality for approval.

2. If the municipality is a county, city, public school district, or park district, the election

must be set for the same date as a statewide primary or general election. A city, public

school district, or park district shall enter an agreement with the governing body of the

county or counties in which the municipality lies concerning the use of a single

canvassing board, the sharing of election materials, the publishing of legal notices,

and the apportioning of election expenses. The city, public school district, or park

district shall notify the county auditor in writing, at least sixty-four days before the

election, of the question to appear on the primary or general election ballot.

3. For a municipality other than a county, city, public school district, or park district:

a. The date of the election may not be less than sixty-four days after the passage of

the initial resolution by the governing body or the filing date of a sufficient petition

filed by the qualified electors of the municipality.

b. The governing body shall designate the date of the election, the polling hours,

and polling place, which must be the same as for municipal elections held within

the municipality. The governing body shall appoint an inspector, two judges, and

two clerks of election for each polling place.

c. If an election official is absent or unable to serve as an election official when a

polling place is open, the remaining election officials for the polling place shall

appoint a qualified elector to fill the vacancy. The election must be conducted and

the election returns must be made and canvassed in the same manner of

elections of members of the governing body of the municipality.
N.D. Cent. Code § 21-04-17 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-17
21-04-17. When bonds are required
Status: in_force

21-04-17. When bonds are required

If at any time it appears that the benefit of the federal act guarantying deposits in financial

institutions has been withdrawn or is about to be withdrawn from the financial institution in which

any public funds are deposited, the board having control of or supervision over such public

funds immediately shall withdraw the full amount thereof from said financial institution, or

forthwith shall require the usual bond required to secure the deposits of such public funds, and it

is unlawful to continue any financial institution as a depository of public funds unless and until

said bonds have been furnished.
N.D. Cent. Code § 21-03-04 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-04
21-03-04. Grant of power to borrow - General limitations of indebtedness
Status: in_force

21-03-04. Grant of power to borrow - General limitations of indebtedness

1. A municipality may borrow money and issue municipal obligations for the purpose

specified and by the procedure provided in this chapter, and for no other purpose and

in no other manner, except as otherwise provided in section 21-03-02. A municipality

may not incur indebtedness in any manner or for any purpose in an amount which,

with all other outstanding indebtedness of the municipality, exceeds five percent of the

assessed value of the taxable property in the municipality, except:

a. An incorporated city, by a two-thirds vote of the qualified voters of the city voting

upon the question at a primary or general election, may increase the limit of

indebtedness three percent on the assessed value beyond the five percent limit,

and a school district, by a majority vote of the qualified voters of the school district

voting upon the question at a primary or general election, may increase the

limitation of indebtedness five percent on the assessed value beyond the five

percent limit.

b. A county or city, when authorized by a majority vote of the qualified voters of the

county or city voting upon the question at a primary or general election, may

issue bonds upon any revenue-producing utility owned by a county or city, for the

purchase or acquisition of the utility, or the building or establishment of the utility,

in amounts not exceeding the physical value of the utility, industry, or enterprise.

c. An incorporated city, if authorized by a majority vote of the qualified voters of the

city voting upon the question at a primary or general election, may become

indebted in any amount not exceeding four percent of the assessed value,

without regard to the existing indebtedness of the city, for the purpose of

constructing or purchasing waterworks for furnishing a supply of water to the

inhabitants of the city or for the purpose of constructing sewers, and for no other

purposes, but the aggregate of the additional indebtedness for waterworks and

sewers may not exceed four percent over the limitations of indebtedness in this

section.

2. All bonds or obligations in excess of the amount of indebtedness permitted by this

chapter, given by any municipality as defined in this chapter, are void.
N.D. Cent. Code § 21-03-23 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-23
21-03-23. Bond record
Status: in_force

21-03-23. Bond record

The county auditor shall keep a bond record in which must be entered, as to each issue of

bonds issued by a taxing district in the county, a record of the date of issuance, the aggregate

amount issued, the date of maturity of each bond, the rate of interest, the amount of the levy on

taxable property for each year certified by the taxing board, the amount levied on any other

object of taxation by the municipality, the amount pledged or allocated from other sources of

revenue of the municipality, and the amount of any annual or periodic payments or distributions

appropriated or allocated by the legislative assembly.
N.D. Cent. Code § 21-03.1-12 — ND Code / Title 21 / Chapter 21-03.1 / Section 21-03.1-12
21-03.1-12. Amendment or repeal - Effect
Status: in_force

21-03.1-12. Amendment or repeal - Effect

The state hereby covenants with the owners of any registered public obligations that it will

not amend or repeal this chapter if the effect may be to impair the exemption from income

taxation of interest on registered public obligations.
N.D. Cent. Code § 21-03.1-08 — ND Code / Title 21 / Chapter 21-03.1 / Section 21-03.1-08
21-03.1-08. Security for deposits
Status: in_force

21-03.1-08. Security for deposits

Obligations issued by public entities under the laws of this state which are in registered

form, whether or not represented by an instrument, and which, except for their form, satisfy the

requirements with regard to security for deposits of moneys of public agencies prescribed

pursuant to any law of this state, must be deemed to satisfy all such requirements even though

they are in registered form if a security interest in such obligations is perfected on behalf of the

public agencies whose moneys are so deposited.
N.D. Cent. Code § 21-07-03 — ND Code / Title 21 / Chapter 21-07 / Section 21-07-03
21-07-03. County treasurer to deliver to municipal treasurer statement showing amount remitted to sinking fund of municipality
Status: in_force

21-07-03. County treasurer to deliver to municipal treasurer statement showing

amount remitted to sinking fund of municipality.

Each county treasurer, when remitting taxes to the treasurers of the various municipalities of

the county as required by law, shall deliver to the municipal treasurer, and county treasurer as

custodian, to whom remittance is made, a statement showing definitely the amount included in

the sum remitted properly belonging to each separate sinking fund levied by the municipality to

whose treasurer remittance is made.
N.D. Cent. Code § 21-01-05 — ND Code / Title 21 / Chapter 21-01 / Section 21-01-05
21-01-05. Warrants for salaries and official publications - Payable one-half in cash prior to other warrants
Status: in_force

21-01-05. Warrants for salaries and official publications - Payable one-half in cash

prior to other warrants.

The governing board of any political subdivision, in the event that there have not been funds

in the treasury of such subdivision sufficient to pay the salaries and wages of the officials and

employees, including publication fees for official printing by the official newspaper of such

subdivision, in full for a period of six months, by resolution, may authorize the issuance of

warrants to such officials, employees, and the official newspaper for salary, wages, and official

publication fees, whereby one-half of such salaries, wages, and official publication fees must be

paid in cash by the treasurer of such political subdivision to such officials, employees, and

official newspaper, and a warrant issued for the balance thereof which must be registered and

paid as other warrants are registered and paid. This section must be construed to relieve the

treasurer of such political subdivision of liability to other warrant holders because of the payment

of salaries, wages, and official publication fees as provided herein.
N.D. Cent. Code § 21-03-01 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-01
21-03-01. Definitions
Status: in_force

21-03-01. Definitions

In this chapter, unless the context or subject matter otherwise requires:

1. "Governing body" means a board of county commissioners, city council, board of city

commissioners, school board of any school district, and the similarly constituted and

acting board of any other municipality enumerated in subsection 3.

2. "Initial resolution" means any resolution or ordinance adopted pursuant to section

21-03-09, by which a proceeding is instituted for the purpose of authorizing a

municipality to borrow money and issue bonds.

3. "Municipality" means a county, city, township, public school district, park district,

recreation service district, or rural fire protection district empowered to borrow money

and issue written obligations to repay the same out of public funds or revenue.

4. "Population of a municipality" means its population according to the last officially

published United States or state census, whichever was taken latest.

5. "Recorded" means copied at length in the record book required by section 21-03-17.

6. "Value of taxable property" or "the assessed valuation" of a municipality means the

assessed value of all taxable property in such municipality as determined pursuant to
N.D. Cent. Code § 21-02-04 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-04
21-02-04. Signing false certificates - Penalty
Status: repealed

21-02-04. Signing false certificates - Penalty

Repealed by S.L. 1997, ch. 221, § 10.
N.D. Cent. Code § 21-12-01 — ND Code / Title 21 / Chapter 21-12 / Section 21-12-01
21-12-01. Definitions
Status: in_force

21-12-01. Definitions

As used in this chapter, unless the context clearly requires otherwise, the following

definitions apply:

1. "Ceiling" means the dollar amount applicable to North Dakota for any calendar year for

the issuance of tax-exempt private activity bonds, as determined under the Tax Reform

Act.

2. "Governmental unit" means any political subdivision of North Dakota or other authority

in the state, including the state or any of its agencies, instrumentalities, or authorities,

having the authority to issue private activity bonds.

3. "Private activity bond" means a tax-exempt evidence of indebtedness which is a

private activity bond under the Tax Reform Act.

4. "Tax Reform Act" means the Tax Reform Act of 1986 [Pub. L. 99-514] and any federal

regulations issued thereunder relating to the allocation of North Dakota's ceiling for the

issuance of tax-exempt private activity bonds.
N.D. Cent. Code § 21-03-16 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-16
21-03-16. Authority to borrow and issue bonds - When complete
Status: in_force

21-03-16. Authority to borrow and issue bonds - When complete

Every municipality which has first complied with all requirements prescribed for and made

applicable to it by this chapter, but not otherwise, may borrow money and issue and sell its

municipal bonds to the amount and for the purpose or purposes specified in the initial resolution.
N.D. Cent. Code § 21-03-39 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-39
21-03-39. Ancillary contract authorized
Status: in_force

21-03-39. Ancillary contract authorized

After any municipality has provided, as required by section 21-03-16, for an issue of bonds

for a lawful purpose which can be accomplished only through performance of an executory

contract by some other contracting party, such contract may be entered into before the actual

execution or sale of the bonds with like effect as if the necessary cash for payments on the

contract already were in the treasury.
N.D. Cent. Code § 21-03.1-01 — ND Code / Title 21 / Chapter 21-03.1 / Section 21-03.1-01
21-03.1-01. Definitions
Status: in_force

21-03.1-01. Definitions

As used in this chapter, the following terms have the following meanings:

1. "Authorized officer" means any individual required or permitted, alone or with others,

by any provision of law or by the issuing public entity, to execute on behalf of the public

entity a certificated registered public obligation or a writing relating to an uncertificated

registered public obligation.

2. "Certificated registered public obligation" means a registered public obligation which is

represented by an instrument.

3. "Code" means the Internal Revenue Code of 1954, as amended.

4. "Financial intermediary" means a bank, broker, clearing corporation, or other person or

the nominee of any of them, which in the ordinary course of its business maintains

registered public obligation accounts for its customers, when so acting.

5. "Issuer" means a public entity which issues an obligation.

6. "Obligation" means an agreement of a public entity to pay principal and any interest

thereon, and includes a share, participation, or other interest in any such agreement.

7. "Official actions" means the actions by statute, order, ordinance, resolution, contract,

or other authorized means by which the issuer provides for issuance of a registered

public obligation.

8. "Official or official body" means the officer that is empowered under the laws of this

state to provide for original issuance of an obligation of the issuer, by defining the

obligation and its terms, conditions, and other incidents, the successor or successors

of any such official or official body, and such other person or group of persons as shall

be assigned duties of such official or official body with respect to a registered public

obligation under applicable law from time to time.

9. "Public entity" means any entity, department, or agency which is empowered under the

laws of this state to issue obligations any interest with respect to which may, under any

provision of law, be provided an exemption from the income tax referred to in the

Code.

10. "Registered public obligation" means an obligation issued by a public entity pursuant

to a system of registration.

11. "System of registration" and its variants means a plan that provides:

a. With respect to a certificated registered public obligation, that:

(1) The certificated registered public obligation specify a person entitled to the

registered public obligation and the rights it represents; and

(2) Transfer of the certificated registered public obligation and the rights it

represents may be registered upon books maintained for that purpose by or

on behalf of the issuer.

b. With respect to an uncertificated registered public obligation, that:

(1) Books maintained by or on behalf of the issuer for the purpose of

registration of the transfer of a registered public obligation specify a person

entitled to the registered public obligation and the rights evidenced thereby;

and

(2) Transfer of the uncertificated registered public obligation and the rights

evidenced thereby be registered upon such books.

12. "Uncertificated registered public obligation" means a registered public obligation which

is not represented by an instrument.
N.D. Cent. Code § 21-03-35 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-35
21-03-35. Effect of registration - Discharge therefrom
Status: in_force

21-03-35. Effect of registration - Discharge therefrom

After registration of a municipal bond as provided in section 21-03-34, no transfer thereof is

valid unless made on the records of the county auditor or the records of the municipality by the

registered owner in person, or by the registered owner's duly authorized attorney, and similarly

noted on the bond, but the same may be discharged from registration by being transferred in

like manner to bearer, and thereafter transferability by delivery is restored, but such bond again

from time to time may be registered or transferred to bearer as before. Such registration,

however, does not affect the negotiability of the appurtenant coupons, but every such coupon

continues to be transferable by delivery only and must remain payable to bearer.
N.D. Cent. Code § 21-04-03 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-03
21-04-03. Funds of public corporations to be deposited in designated depository
Status: in_force

21-04-03. Funds of public corporations to be deposited in designated depository

Public funds belonging to or in the custody of any public corporation must be deposited in

the Bank of North Dakota or in financial institutions which have been duly designated as

depositories in the manner prescribed in this chapter.
N.D. Cent. Code § 21-02-13 — ND Code / Title 21 / Chapter 21-02 / Section 21-02-13
21-02-13. Certificates of indebtedness in anticipation of revenue to be received from the state
Status: repealed

21-02-13. Certificates of indebtedness in anticipation of revenue to be received from

the state.

Repealed by S.L. 1997, ch. 221, § 10.
N.D. Cent. Code § 21-06-03 — ND Code / Title 21 / Chapter 21-06 / Section 21-06-03
21-06-03. Duplication or payment - By whom ordered - Proof and bond or signed written agreement required
Status: in_force

21-06-03. Duplication or payment - By whom ordered - Proof and bond or signed

written agreement required.

The duplication or payment of any mutilated, defaced, lost, or destroyed obligation must be

made upon resolution duly adopted:

1. In case of a bond or interest coupon of the state, by the industrial commission.

2. In case of any other obligation of the state, by the board, officer, or agency which

authorized the issuance of the original.

3. In case of an obligation of a political subdivision, by the governing board thereof.

Before a duplicate may be issued or payment made in connection with a lost or destroyed

obligation, the owner thereof shall furnish proof of such loss or destruction whereupon the state

or political subdivision, as the case may be, may require either a surety bond in the amount of

the lost obligation, a signed written agreement by the owner, or similar assurance conditioned to

save the obligor harmless in the premises. If the Bank of North Dakota is the owner of any such

obligation, it may not be required to furnish a bond but it shall furnish proof of the loss or

destruction of the obligation and shall reimburse the state or political subdivision for any loss or

damage suffered by reason of the issuance of such duplicate or the payment of such obligation.
N.D. Cent. Code § 21-03-10.1 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-10.1
21-03-10.1. School districts - Use of bond funds
Status: in_force

21-03-10.1. School districts - Use of bond funds

1. The initial resolution or petition providing for the issuance of bonds, whether adopted

by a majority vote of the school board of a school district or proposed by the qualified

electors of the school district as provided for in section 21-03-10, may, within the

discretion of those proposing such initial resolution or petition, provide for a specific

school plan for which the proceeds of the bond issue must be exclusively used except

as otherwise provided in section 21-03-42. Such plan must designate the general area

to be served by expenditure of bond proceeds for school purposes. The area intended

to be served must be described in the plan, but need not be described in the bond

election ballot.

2. A bond election ballot form in substantially the form prescribed in section 21-03-13

must be used in a school district bond election. After approval of the initial resolution

by the number of qualified electors required by section 21-03-07, the proceeds of the

bond issue may be used only for the purpose and in the manner designated by the

school plan except as herein provided.

3. After approval of the bond issue, no change may be made in the purpose of

expenditure of the bond proceeds except that, upon a favorable vote of sixty percent of

the qualified electors residing in any specific area intended to be served as provided in

subsection 1, material changes may be made in such plan as it affects said area to the

extent such changes do not conflict with contractual obligations incurred.
N.D. Cent. Code § 21-12-03 — ND Code / Title 21 / Chapter 21-12 / Section 21-12-03
21-12-03. Order in which allocations issued
Status: in_force

21-12-03. Order in which allocations issued

Allocations of the ceiling may be made on the basis of the chronological receipt of

completed applications or, if completed applications are received on the same day by the

governor, according to the earliest inducement resolution date, or on a case-by-case basis

without regard to the date of receipt of the application or to the date of the inducement

resolution.
N.D. Cent. Code § 21-10-02.1 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-02.1
21-10-02.1. Board - Policies on investment goals and objectives and asset allocation
Status: in_force

21-10-02.1. Board - Policies on investment goals and objectives and asset allocation

1. The governing body of each fund enumerated in section 21-10-06 shall establish

policies on investment goals and objectives and asset allocation for each respective

fund. The policies must provide for:

a. The definition and assignment of duties and responsibilities to advisory services

and persons employed by the board.

b. Rate of return objectives, including liquidity requirements and acceptable levels of

risk.

c. Long-range asset allocation goals.

d. Guidelines for the selection and redemption of investments.

e. Investment diversification, investment quality, qualification of advisory services,

and amounts to be invested by advisory services.

f. The type of reports and procedures to be used in evaluating performance.

2. The asset allocation and any subsequent allocation changes for each fund must be

approved by the governing body of that fund and the state investment board. The

governing body of each fund shall use the staff and consultants of the retirement and

investment office in developing asset allocation and investment policies.
N.D. Cent. Code § 21-10-13 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-13
21-10-13. Legacy earnings fund - State treasurer - Transfers
Status: repealed

21-10-13. Legacy earnings fund - State treasurer - Transfers

Repealed by S.L. 2025, ch. 555, § 25.
N.D. Cent. Code § 21-06-02 — ND Code / Title 21 / Chapter 21-06 / Section 21-06-02
21-06-02. Payment of defaced or lost obligation
Status: in_force

21-06-02. Payment of defaced or lost obligation

If any instrument which might be duplicated under the provisions of this chapter is due and

payable, the same may be paid by the state treasurer or the treasurer of the political

subdivision, as the case may be, without the issuance of a duplicate.
N.D. Cent. Code § 21-03-48 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-48
21-03-48. Penalty for diversion of sinking and interest funds
Status: repealed

21-03-48. Penalty for diversion of sinking and interest funds

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 21-03-46 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-46
21-03-46. Municipalities in more than one county
Status: in_force

21-03-46. Municipalities in more than one county

When in this chapter a county officer is required to take any action with reference to the

bond issues or sinking funds of any municipality of such county, if such municipality is situated

partly within one county and partly within another or others, the governing body of such

municipality by ordinance or recorded resolution shall designate the county whose official shall

act in such capacity. In such case, collection of taxes levied in accordance with this chapter in

any county wherein a portion of such municipality is situated must be transmitted and delivered

to the custodian of the sinking fund of the municipality so specified by the governing body.
N.D. Cent. Code § 21-06-04 — ND Code / Title 21 / Chapter 21-06 / Section 21-06-04
21-06-04. Record to be kept
Status: in_force

21-06-04. Record to be kept

A record of all payments, reissues, and duplicates made in connection with mutilated,

defaced, lost, or destroyed obligations must be kept by the state treasurer, or by the treasurer of

the political subdivision, as the case may be, showing the date of such payments, duplicates or

reissues, and the person or persons to whom paid or issued. Such record at once must be

certified to the proper auditing official.
N.D. Cent. Code § 21-01-02 — ND Code / Title 21 / Chapter 21-01 / Section 21-01-02
21-01-02. Warrant - Order of payment
Status: in_force

21-01-02. Warrant - Order of payment

Any warrant upon the treasurer of any taxing district must be paid in the order of its

presentation for payment, except as otherwise provided in this chapter. Such warrant must be

so drawn that when signed by the treasurer in an appropriate place it becomes a check on the

taxing district depository. No warrant upon the treasurer may be delivered or mailed to the

payee or payee's agent or representative until such warrant has been signed by the treasurer

and entered on the treasurer's books as a check drawn on a bank depository.
N.D. Cent. Code § 21-06-11 — ND Code / Title 21 / Chapter 21-06 / Section 21-06-11
21-06-11. Expenditure of federal revenue-sharing moneys
Status: in_force

21-06-11. Expenditure of federal revenue-sharing moneys

A political subdivision may expend federal revenue-sharing moneys for any purpose for

which general or special fund moneys of the political subdivision may be expended, regardless

of whether a tax levy by a vote of the political subdivision electorate has been made or is

required for such purpose. For the purposes of this section, "political subdivision" means any

county, city, township, or other unit of local government.
N.D. Cent. Code § 21-03.1-07 — ND Code / Title 21 / Chapter 21-03.1 / Section 21-03.1-07
21-03.1-07. Costs - Collection
Status: in_force

21-03.1-07. Costs - Collection

1. An issuer, prior to or at original issuance of registered public obligations, may provide

as a part of a system of registration that the transferor or transferee of the registered

public obligations pay all or a designated part of the costs of the system as a condition

precedent to transfer, that costs be paid out of proceeds of the registered public

obligations, or that both methods be used. The portion of the costs of the system not

provided to be paid for by the transferor or transferee or out of proceeds is the liability

of the issuer.

2. The issuer may as part of a system of registration provide for reimbursement or for

satisfaction of its liability by payment by others. The issuer may enter into agreements

with others respecting such reimbursement or payment, may establish fees and

charges pursuant to such agreements or otherwise, and may provide that the amount

or estimated amount of such fees and charges must be reimbursed or paid from the

same sources and by means of the same collection and enforcement procedures and

with the same priority and effect as with respect to the obligations.
N.D. Cent. Code § 21-10-06.1 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-06.1
21-10-06.1. Board - Investment reports
Status: in_force

21-10-06.1. Board - Investment reports

The board shall annually prepare reports on the investment performance of each fund under

its control. The reports must be uniform and must include:

1. A list of the advisory services managing investments for the board.

2. A list of investments at market value, compared to previous reporting period, of each

fund managed by each advisory service.

3. Earnings, percentage earned, and change in market value of each fund's investments.

4. Comparison of the performance of each fund managed by each advisory service to

other funds under the board's control and to generally accepted market indicators.
N.D. Cent. Code § 21-03-25 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-25
21-03-25. Bonds - Advertised for bids - Exception
Status: in_force

21-03-25. Bonds - Advertised for bids - Exception

A municipality may not sell or enter any contract for the sale of any issue of its bonds

authorized by this chapter in an amount exceeding one million dollars, for whatever purpose

issued, without first advertising for bids in the manner prescribed by section 21-03-26, except as

provided in section 21-03-30, and except that bonds issued under the authorization of

subdivision g of subsection 2 of section 21-03-06 with the consent of the warrant holders, may

be exchanged for matured warrants or matured interest coupons of warrants of the special

improvement fund having the deficiency on account of which such bonds are being issued,

without such advertising. The par value and accrued interest of the bonds so delivered may not

exceed the par value and accrued interest of the warrants and interest coupons, and accrued

interest thereon, for which they are exchanged.
N.D. Cent. Code § 21-10-12 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-12
21-10-12. Legacy fund definitions
Status: repealed

21-10-12. Legacy fund definitions

Repealed by S.L. 2025, ch. 555, § 25.
N.D. Cent. Code § 21-10-06.2 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-06.2
21-10-06.2. Investment costs
Status: in_force

21-10-06.2. Investment costs

The amounts necessary to pay for investment costs, such as investment counseling fees,

trustee fees, custodial fees, performance measurement fees, expenses associated with money

manager searches, expenses associated with onsite audits and reviews of investment

managers, and asset allocation expenses, incurred by the state investment board are hereby

appropriated and must be paid directly out of the funds listed in section 21-10-06 by the fund

incurring the expense.
N.D. Cent. Code § 21-03-30 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-30
21-03-30. Municipal bonds - Private sale to United States or state agencies
Status: in_force

21-03-30. Municipal bonds - Private sale to United States or state agencies

The procedure prescribed in this chapter relative to calling for bids upon the sale of

municipal bonds is not required in the case of bonds issued under the authorization of

subdivision b or c of subsection 7 of section 21-03-06, or in case bonds are sold to:

1. The state board of university and school lands.

2. The Bank of North Dakota.

3. The public finance authority.

4. Trust funds administered by public officials.

5. The United States of America, or any agency or instrumentality thereof.
N.D. Cent. Code § 21-06-12 — ND Code / Title 21 / Chapter 21-06 / Section 21-06-12
21-06-12. Use of public funds or property for nonprofit education foundations - Public purposes
Status: in_force

21-06-12. Use of public funds or property for nonprofit education foundations - Public

purposes.

Any school district may provide use of public property or in-kind services of personnel to

participate in the creation and administration of nonprofit public school education foundations,

subject to an annual audit, to receive, manage, invest, and distribute funds or property provided

to the foundation by private or nonschool district governmental entities, if such foundations are

established to enhance the mission of the school district by providing facilities or services for

recognition of staff and students that are not normally available through the funding of the

school district, to administer funds received for education scholarships or endowments

established by other entities, to encourage elementary, secondary, and postsecondary

education, and to assist in raising, adding, investing, and distributing funds and earnings

according to guidelines established by the foundation. The records of a foundation are not

subject to audit under section 54-10-14.
N.D. Cent. Code § 21-03-43 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-43
21-03-43. Investment of sinking funds
Status: in_force

21-03-43. Investment of sinking funds

Taking care that enough cash is retained always in the sinking fund to provide for annual

payments of principal and interest, the surplus, if any, may be loaned or invested under the

direction of the proper governing body as follows:

1. In the outstanding bonds for the payment of which the sinking fund is required, at any

price not exceeding the principal, accrued interest, and a premium of not to exceed

two years' interest on such bonds.

2. In interest-bearing bonds of the United States, or of the state of North Dakota, or of

any municipality as defined in section 21-03-01.

3. In conformity with the provisions of chapter 21-04.

Investments of the class specified in subsection 2 continue a part of the sinking fund and must

be held in custody of the treasurer of the municipality. Bonds representing such investments

may be sold by the governing body at any time, but the money received remains, until used, a

part of the sinking fund.
N.D. Cent. Code § 21-06-09 — ND Code / Title 21 / Chapter 21-06 / Section 21-06-09
21-06-09. Authorization to make loans or accept grants
Status: in_force

21-06-09. Authorization to make loans or accept grants

The state, any of its departments, boards, bureaus, or commissions, by and with the

approval of the governor, may make loans, or accept advances from the federal government,

any agency or instrumentality thereof, for the purpose of aiding in financing the cost of

architectural, engineering, and economic investigations and studies, surveys, designs, plans,

working drawings, specifications, procedures, and other actions preliminary to the construction

of public works and improvements, and may repay to the federal government, any of its

agencies or instrumentalities thereof, such loans or advances at such times as the construction

of said public works or improvements so planned are undertaken; and any county, city, park

district, school district, and township, may likewise, by action of the governing body of the same,

also make such loans and accept such advances and repay the same in the same manner.

Such loans made or grants accepted may be made or accepted under such rules and

regulations as the federal government, or any of its agencies or instrumentalities may prescribe.

Provided, however, that neither the state, any of its boards, bureaus, departments, or

commissions, nor any of the political subdivisions enumerated herein may incur any liability for

the payment of such loans or advances unless the actual construction of such public works and

improvements is undertaken; and provided, further, that the provisions of this section may not

be construed to apply to loans, grants, or advances to the department of transportation made or

to be made by the federal government, any agency or instrumentality thereof, or to such loans,

grants, or advances made to political subdivisions by the said department of transportation.
N.D. Cent. Code § 21-04-19 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-19
21-04-19. Itemized statements
Status: in_force

21-04-19. Itemized statements

Each depository shall:

1. Furnish on the first day of each month to the public corporation, the state, or state

institution, to the credit of which the deposit is held, an itemized statement of the

amount in such deposit subject to check. Such statement must be verified whenever

required by the state treasurer as to funds of the state institutions or by the treasurer of

any public corporation as to funds of such corporation. All sums of interest accruing on

funds so deposited must be credited to said deposit on the first day of each month for

the preceding month.

2. On July first of each year, furnish to the business manager of each school district, and

to the county superintendent of schools of the county in which the school district is

located, a statement showing the amount of deposits to the credit of each school

district at the close of business on June thirtieth.
N.D. Cent. Code § 21-05-06 — ND Code / Title 21 / Chapter 21-05 / Section 21-05-06
21-05-06. What accounts not verified
Status: in_force

21-05-06. What accounts not verified

In case any account, claim, or demand against a county or township is made or presented

by any administrator or executor on behalf of the estate of a deceased person, the administrator

or executor may not be required to verify the same but may prove the same otherwise to the

satisfaction of the governing board.
N.D. Cent. Code § 21-03-14 — ND Code / Title 21 / Chapter 21-03 / Section 21-03-14
21-03-14. Bonds issued without an election
Status: in_force

21-03-14. Bonds issued without an election

Proceedings for the issuance of bonds under this chapter, if no election is required, must be

instituted by a resolution of the governing body containing the facts required for an initial

resolution as prescribed by section 21-03-09. At or after the adoption of the resolution, the

governing body may proceed to sell, issue, and deliver the bonds as hereinafter provided for the

sale, issuance, and delivery of bonds.
N.D. Cent. Code § 21-04-11 — ND Code / Title 21 / Chapter 21-04 / Section 21-04-11
21-04-11. Record of securities - Reapproval semiannually
Status: repealed

21-04-11. Record of securities - Reapproval semiannually

Repealed by S.L. 2017, ch. 182, § 2.
N.D. Cent. Code § 21-02.1-04 — ND Code / Title 21 / Chapter 21-02.1 / Section 21-02.1-04
21-02.1-04. Answer to petition - Defense by person interested
Status: in_force

21-02.1-04. Answer to petition - Defense by person interested

Any person interested in the proceedings for issuance or sale of the evidence of

indebtedness or proceedings relating to the payment of the evidence of indebtedness may

answer the petition. The provisions of title 28 and the North Dakota Rules of Civil Procedure

relating to the answer to a complaint are applicable to an answer to a petition. The person

answering the petition must be the defendant in the special proceeding and the political

subdivision must be the plaintiff. Every material statement of the petition not specifically

controverted by the answer, for the purpose of the special proceeding, is to be taken as true.

Each person failing to answer the petition is deemed to admit as true all the material statements

of the petition. The rules of pleading and practice provided by title 28 and the North Dakota

Rules of Civil Procedure which are not inconsistent with the provisions of this chapter are

applicable to the special proceeding provided for in this chapter.
N.D. Cent. Code § 21-10-05 — ND Code / Title 21 / Chapter 21-10 / Section 21-10-05
21-10-05. Investment director - Powers and duties
Status: in_force

21-10-05. Investment director - Powers and duties

Subject to the limitations contained in the law or the policymaking regulations or resolutions

adopted by the board, the investment director may sign and execute all contracts and

agreements to make purchases, sales, exchanges, investments, and reinvestments relating to

the funds under the management of the board. This section is a continuing appropriation of all

moneys required for the making of investments of funds under the management of the board.

The investment director shall see that moneys invested are at all times handled in the best

interests of the funds. Securities or investments may be sold or exchanged for other securities

or investments.

The investment director shall formulate and recommend to the investment board for

approval investment regulations or resolutions pertaining to the kind or nature of investments

and limitations, conditions, and restrictions upon the methods, practices, or procedures for

investment, reinvestment, purchase, sale, or exchange transactions that should govern the

investment of funds under this chapter.
N.D. Cent. Code § 21-07-02 — ND Code / Title 21 / Chapter 21-07 / Section 21-07-02
21-07-02. County treasurer to keep record of each separate municipal levy for sinking fund
Status: in_force

21-07-02. County treasurer to keep record of each separate municipal levy for sinking

fund.

Each county treasurer, at the close of each month, shall make a permanent office record

showing separately and distinctly the amount of each separate municipal levy for sinking fund

purposes included in the taxes collected. Such record at all times must show the amount of

each annual levy for each separate interest and sinking fund, as shown by the schedule

delivered to the county treasurer by the county auditor, which has been collected by the county

treasurer.