2015 North Dakota Century Code Title 61 Waters Chapter 61-08 Fiscal Affairs of Irrigation Districts
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CHAPTER 61-08
FISCAL AFFAIRS OF IRRIGATION DISTRICTS
61-08-01. Resolution to institute initial proceedings for bonds - Contents - Adoption.
Proceedings for the issuance of bonds by an irrigation district must be instituted by the
adoption of an initial resolution by the board of directors of the district. The initial resolution must
state:
1. The maximum principal amount of bonds proposed to be issued.
2. The purpose for which the bonds are proposed to be issued.
3. The total amount of bonded indebtedness, if any, of the district.
4. Any other statement of fact deemed advisable by the board.
The initial resolution may be adopted by a majority of the board at any regular meeting or at any
special meeting of which the prescribed notice has been given.
61-08-02. Adopting initial resolutions by board - Date of election - Contents of
resolution - Conduct of election.
After the adoption of an initial resolution as provided in section 61-08-01, the board, by a
resolution, shall provide for submitting to the electors of the district the question whether the
initial resolution providing for the issuance of bonds shall be approved. The date of such
election shall not be less than twenty days after the adoption of such initial resolution by the
board. The board, in such resolution, shall designate the date of such election, the polling hours,
and polling place thereof. Such election shall be conducted and the returns made and
canvassed as in the case of a regular election of the district.
61-08-03. Notice of election - Contents.
A notice of the election containing a complete copy of the initial resolution provided for in
section 61-08-01 shall be given in the manner provided for a regular election of the district.
61-08-04. Ballot for election - Contents - Spoiled or blank ballots not counted.
The ballot for a bond election shall be written or printed and shall state the question in
substantially the following form:
Shall the __________ irrigation district issue its bonds in the amount of not to exceed
$__________ (here insert the amount) for the purpose of __________ (here insert the
purpose)?
Yes ☐
No
☐
Spoiled or blank ballots cast at such election shall not be counted either for or against the
proposed issue.
61-08-05. Majority of votes favoring issuance of bonds - Duty of board.
If a majority of the votes cast at a bond election are in favor of the proposal to issue bonds
as stated in the initial resolution, the board of directors shall proceed to sell, issue, and deliver
such bonds as provided in this chapter.
61-08-06. Bonds - Terms.
Bonds issued by any irrigation district under the provisions of this chapter must be in the
denominations and form, be subject to redemption with or without premium, and be subject to
any other terms or conditions as the board of directors may determine, and must mature in not
more than forty years from the date of the bonds. If the maturities are serial, the first installment
of principal must fall due not more than three years, and the last installment not more than forty
years, from the date of the bonds.
61-08-07. Bonds - Rate of interest.
Every bond provided for in this chapter must be a negotiable instrument and must bear
interest at a rate or rates resulting in an average annual net interest rate which must not exceed
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twelve percent per annum if the bonds are sold at private sale. There is no interest rate ceiling
on bonds sold at public sale or to the state of North Dakota or any of its agencies or
instrumentalities. Each bond must specify the time and place of payment of the principal.
61-08-08. Denominations of bonds - Payable in lawful money of United States.
The entire issue of bonds may be composed of bonds of a single denomination or of two or
more denominations. Such bonds shall recite that they are payable in lawful money of the
United States.
61-08-09. Execution of bonds - Validity of bonds not impaired by change in officers.
The bonds issued under the provisions of this chapter must be executed in the name of and
for the district by the manual or facsimile signatures of the chairman and secretary of the board.
The validity of every bond so executed is not impaired by the fact that a subscribing or attesting
officer has ceased to be an officer of the district before delivery to the purchaser.
61-08-10. Registration of bond by secretary - Contents - Copy filed with county
auditor - Secretary to endorse.
Repealed by S.L. 1997, ch. 518, § 24.
61-08-11. Cancellation of bonds authorized but not paid - Destruction of bonds Affidavit of destruction - Filing.
Repealed by S.L. 1997, ch. 518, § 24.
61-08-12. Sale of bonds - Contents of notice.
Bonds may be sold at private sale without notice or at public sale after a notice calling for
bids has been published at least once in the official newspaper of each county in which the
district is situated not less than fifteen days nor more than thirty days before the date specified
for receiving bids. The notice may be in any form but must specify the amount of bonds offered
for sale and the date or dates of the maturity thereof, and the notice must specify that the bids
must be sealed and in writing and must state the time when and place where bids will be
received and will be opened.
61-08-13. Opening bids for bond issues - Record of bids kept - Bids accompanied by
check.
At the time specified for opening the bids for bonds, the secretary of the board publicly shall
open the bids in the presence of the board, and after the bids have been opened, the secretary
shall enter in a permanent record the amount and rate of interest of each bid and the name and
address of the bidder. Each bid 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.
61-08-14. Awarding sale of bond issue - Rejecting bids.
The board of directors shall award the sale of bonds to the bidder who agrees to purchase
them upon the terms most favorable to the district, except that the board may reject any and all
bids. No sale may be for less than ninety-eight percent of the par value and accrued interest on
the bonds.
61-08-15. Officer of irrigation district accepting commission or compensation in
regard to bonds - Misdemeanor.
Repealed by S.L. 1975, ch. 106, § 673.
61-08-16. Registration of bearer bonds - Transfer must be recorded in register Registration not to affect negotiability of coupons.
Repealed by S.L. 1997, ch. 518, § 24.
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61-08-17. When issuance of district improvement warrants permissible.
Repealed by S.L. 1997, ch. 518, § 24.
61-08-18. Use of district improvement warrants - Assessments levied to raise funds to
pay improvement warrants.
Repealed by S.L. 1997, ch. 518, § 24.
61-08-19. Improvement warrants - Amount - When payable - Maturity.
Repealed by S.L. 1997, ch. 518, § 24.
61-08-20. Interest on warrants - Signatures - Contents.
Repealed by S.L. 1997, ch. 518, § 24.
61-08-21. Registration of warrants by secretary - Filing copy of record in county
auditor's office.
Repealed by S.L. 1997, ch. 518, § 24.
61-08-22. Bonds may be secured by trust indenture - Powers vested in trustee.
In the discretion of the board, bonds may be secured by a trust indenture by and between
the district and a corporate trustee, which may be any trust company or bank having the powers
of a trust company within or outside this state. The board may vest in the trustee the right to
enforce any covenant made to secure or to pay the bonds.
61-08-23. Where money received from bond issue placed - Lien on money.
All money received from any bond issue must be placed in a fund and applied solely for the
purpose for which it was borrowed and for no other purpose except that the money may be
temporarily invested in securities approved by the board. A lien is granted upon the money until
so applied, in favor of the owners or holders of the bonds or in favor of the trustee appointed in
connection with the bonds.
61-08-24. Board may appoint fiscal agent - Who may be.
The board, in its discretion, may appoint a fiscal agent located in some city within or without
this state. Every such fiscal agent shall 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.
61-08-25. Bonds and contracts payable from assessments of real property and from
water charges.
Bonds issued by any irrigation district, and the interest thereon, and contracts not payable in
bonds, made and entered into by the district for the acquisition of irrigation works already
constructed, or for the establishment and construction of irrigation works, or any part thereof,
must be paid from the revenue obtained from special assessments upon the real property of the
district or from any other revenue available for that purpose obtained from charges to water
users or from the sale of water to any person, firm, corporation, limited liability company,
municipality, or other irrigation district, or by a combination of special assessments and water
charges.
61-08-26. County treasurer to be custodian of funds.
The county treasurer shall act as the custodian of sinking funds, or funds created for the
payment of bonds, except that in case an irrigation district is located in more than one county
the board, by recorded resolution, shall designate the county treasurer who shall act as the
custodian of the funds. Upon the adoption of the resolution, the county treasurer so designated
shall act as the custodian. A copy of the resolution and a copy of each and every contract, trust
agreement, or trust indenture relating to the issuance and payment of bonds must be filed with
the county treasurer.
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61-08-27. District treasurer to remit moneys to county treasurer - Crediting proper
fund.
The district treasurer shall remit to the county treasurer all moneys received by the treasurer
in payment of assessments levied for sinking funds or for the payment of bonds. The district
treasurer also shall remit to the county treasurer moneys raised from water rentals or water
charges, when directed to do so by the board, and the district treasurer shall designate the fund
or funds to which the moneys belong, except that all moneys, from whatever source derived,
obligated under the terms of any contract, or agreement made and entered into by the district, to
meet payments as they become due, shall be paid and remitted to the county treasurer and
shall be credited by the county treasurer to the proper fund.
61-08-28. Payment of bonds and interest.
The county treasurer shall pay the principal of, premium, if any, and interest on the bonds
upon maturity, redemption, or purchase in the open market from any moneys in the fund created
for the payment thereof. The county treasurer may disburse moneys in the fund to the fiscal
agent or trustee appointed by the board for the purpose of paying the principal of, premium, if
any, and interest on the bonds for which the fund was created, without any authorization from
the board.
61-08-29. Claims paid by district treasurer - Insufficient funds - Verification of claims.
No claim, other than payments of principal of, premium, if any, or interest on bonds, shall be
paid by the district treasurer until the claim has been allowed by the board, and only upon
warrants signed by the president and countersigned by the secretary. If the treasurer does not
have sufficient money on hand to pay a warrant when it is presented for payment, the treasurer
shall endorse thereon "Not paid for want of funds" and the date when so presented, over the
treasurer's signature. All claims against the district must be certified the same as claims filed
against a county. The board may require any claim to be verified. The secretary of the district
may administer an oath to the person verifying a claim.
61-08-30. Board may withdraw funds from district and deposit with county treasurer Duty of treasurer.
The board may draw from time to time from the construction fund and deposit in the county
treasury of the county where the office of the board is situated any sum in excess of the sum of
twenty-five thousand dollars. The county treasurer shall receive and receipt for the same and
place the same to the credit of the district, and the county treasurer shall be responsible upon
the county treasurer's official bond for the safekeeping and disbursement of the same as
provided in this chapter. The county treasurer shall pay out the same, or any part thereof, to the
treasurer of the district only upon the order of the board, signed by the president, and attested
by the secretary.
61-08-31. County treasurer to make report to board monthly.
The county treasurer shall report in writing to the district on the second Monday in each
month the amount of money belonging to the district in the county treasury, the amount of
receipts for the month preceding, and the amount of the moneys paid out and assessments
against each tract or parcel of land within the district which were paid in the preceding month.
Such report shall be verified and filed with the secretary of the board.
61-08-32. District treasurer to make report to board - Verifying and filing.
The district treasurer shall report to the board in writing as often as the board may require in
its bylaws, the amount of money in the district treasury, the amount of receipts since the
previous report, and the amount and items of expenditures. Such report shall be verified and
filed with the secretary of the board.
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61-08-33. District treasurer to keep warrant register - Contents - How warrants
payable.
Repealed by S.L. 1997, ch. 518, § 24.
61-08-34. Refunding irrigation district bonds - Negotiating new bonds.
Each irrigation district in this state that has issued or shall issue bonds or improvement
warrants purporting to have been issued for any purpose authorized by law, which bonds or
improvement warrants have been sold and delivered to purchasers for value and constitute an
existing indebtedness, may at any time after or before maturity refund the same and issue and
sell refunding bonds in amounts, bearing interest at rates, and maturing on dates as determined
by the board.
61-08-35. Procedure used in issuing refunding bonds.
When in the judgment of the board of directors of an irrigation district it is in the best
interests of the irrigation district to issue its bonds for the purpose of refunding or paying
outstanding indebtedness as provided in section 61-08-34, refunding bonds may be issued
pursuant to resolutions duly passed at a regular or special meeting of the board of directors.
The refunding bonds may be sold at public or private sale and must be signed in the same
manner as the bonds to be refunded or by the officers of the irrigation district as may be
designated in the resolutions providing for their issuance.
61-08-36. Refunding bonds - When payable - Interest - Denominations - Interest
coupons.
Repealed by S.L. 1997, ch. 518, § 24.
61-08-37. Refunding bonds may be exchanged or sold.
Repealed by S.L. 1997, ch. 518, § 24.
61-08-38. Amount of refunding bonds issued.
Repealed by S.L. 1997, ch. 518, § 24.
61-08-39. Assessments - Proceeds - Levy.
All assessments made by an irrigation district for the payment of the bonds or improvement
warrants to be refunded must inure to the benefit of the holders of the refunding bonds and the
proceeds of the assessments must be utilized for the purpose of paying the interest and
principal of the refunding bonds, and the board of directors of the irrigation district shall levy an
assessment against the lands of the district, as provided by law for levying assessments,
sufficient to pay the interest on the refunding bonds and to create a sinking fund to retire the
refunding bonds at maturity.
61-08-40. Provisions relating to payment of bonds applicable to refunding bonds.
All provisions of law relating to the assessment in irrigation districts and the collection
thereof for the purpose of raising funds for the payment of bonds of an irrigation district shall be
applicable to bonds issued under the provisions of sections 61-08-34 through 61-08-39.
61-08-41. Issuance of revenue bonds.
The acquisition, construction, reconstruction, improvement, betterment, or extension of any
revenue-producing facility, and the issuance of revenue bonds in anticipation of the collection of
the revenues of the facility, may be authorized by resolution adopted by the affirmative vote of a
majority of the board of directors. The amount of the bonds authorized may not exceed the
amount authorized by the electors of the district as provided in this chapter.
61-08-42. Payment and security for revenue bonds.
Revenue bonds issued under this chapter may not be payable from nor charged upon any
funds other than the revenue pledged to the payment of the bonds, nor is the district issuing the
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bonds subject to any pecuniary liability on the bonds. A holder of the bonds does not have the
right to compel the levy of special assessments to pay the bonds or the interest, or to enforce
payment of the bonds against any property of the district other than property pledged as security
for the bonds. Each revenue bond issued under this chapter must recite in substance that the
bond, including interest on the bond, is payable solely from the revenue pledged to the payment
of the bond, and that the bond does not constitute a debt of the district within the meaning of
any constitutional or statutory limitation.
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