The articles of incorporation of an institutional holding association must contain the following: 1. The name of the association. 2. The place, which must be within this state, where its business will be transacted, and the name of the educational institution in connection with which it will operate. 3. The term for which it is to exist. 4. A provision that it is formed under this chapter to carry out the objects and purposes thereof. 5. The number of its members and the condition of membership and succession in the association. 6. The number of its trustees, who may or may not be members, and the names and residences of the persons who shall serve as trustees until their successors are elected and qualified.
15-17-05. State board of higher education may lease or purchase dormitory - State to incur no liability. The state board of higher education has the power, and the state shall incur no liability whatever by reason of the exercise of the authority granted to the board of higher education by this chapter: 1. To take all necessary and proper action and proceedings to carry out the terms and provisions of this chapter and to do and perform all of the acts and duties imposed upon said board. 2. To lease from an institutional holding association, its successors or assigns, the site, dormitory, and equipment, or any of them, for a term of not to exceed fifty years, to be
used and operated by the board solely for educational purposes in connection with one of the educational institutions enumerated in this chapter. Such lease must provide for the payment to such association, its successors or assigns, of a net cash annual rental of not more than fifteen percent of the cost of the site, dormitory, and equipment, but at least equal to an amount sufficient to pay the interest on the bonded indebtedness of the association and to retire its serial bonds as they mature. The annual rental shall be payable solely and exclusively out of the income derived from the operation of the dormitory. 3. To purchase from an institutional holding association, its successors or assigns, the site, dormitory, and equipment, or any of them, at a price not to exceed the cost of the same, to be used and operated by said board solely for educational purposes in connection with one of the educational institutions enumerated in this chapter. Such purchase price shall be payable for not more than fifty years, in annual installments of not more than fifteen percent of the purchase price, at a rate of interest of not more than five percent per annum, payable semiannually, and shall be payable solely and exclusively out of the income derived from the operation of such dormitory.
15-17-06. Property of and evidence of indebtedness issued by institutional holding association exempt from taxation. Any site, dormitory, equipment, or appurtenances acquired, purchased, erected, installed, owned, operated, or maintained by an institutional holding association, its successors or assigns, as provided in this chapter, and all bonds or other evidences of indebtedness issued lawfully by such association, are exempt from taxation.