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.
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.