If the last maturing bonds secured by a first mortgage or deed of trust on an improvement, as provided in this chapter, are not paid when they become due, and if a deficiency remains, the governing body of the municipality, or the respective governing bodies of the municipalities, shall levy a tax upon all of the taxable property within the limits of the municipality or municipalities for the payment of such deficiency.
40-34-09. Action maintained on failure to pay principal or interest of bonds - Court receiver - Sale of property - Redemption - Sheriff's deed. If a default occurs in the payment of the principal or interest of any bonds secured by a mortgage or deed of trust on the improvement and such default continues for a period of not less than six months, an action may be commenced in the district court of the county in which such improvement or some part thereof is located, by the holder or holders of not less than one-half of the outstanding past-due bonds or by the legal holder of the deed of trust, when authorized by a like number of bondholders, for the purpose of foreclosing the mortgage or deed of trust securing such bonds. In such action, the court may enter a decree providing for the management and operation of such improvement by a court receiver and for the sale of the property secured by such mortgage or trust deed and for the application of the net revenues arising from the operation of such plant upon the secured debt during the period of redemption, which shall be one year from and after the date of the sale thereof. If there is no redemption from such sale within the time herein provided, a sheriff's deed shall issue to the holder of the certificate of sale. The procedure subsequent to the entry of a foreclosure decree shall be, as far as applicable, that provided in title 32 for the sale of real property under special execution.
40-34-10. Franchise granted to holder of sheriff's deed to operate property - Contents of franchise. If after the issuance of a sheriff's deed as provided in section 40-34-09, it shall be made to appear to the public service commission that it is in the public interest that such utility and
improvement be continued in operation, such commission may grant a franchise to the owners of such utility and improvement to engage in such business and to operate such improvement and utility. Such franchise may: 1. Authorize such owner or owners to charge each person, firm, corporation, or limited liability company owning property from which sewage or garbage is received such fee therefor as may be determined to be reasonable by such commission upon proper application and after notice to the municipality affected and a hearing upon such application; 2. Grant to such owner or owners, under such reasonable rules, regulations, and supervision as may be established by such commission, the right and privilege to lay all intercepting and other sewers and connecting pipes in the public streets and alleys of the municipality or municipalities as may be necessary to receive and conduct the sewage to the disposal plant; and 3. Provide for an accounting from time to time of the gross revenues of the utility or improvement and the application of the net revenues as determined by such commission upon the original secured indebtedness to the end that the holder of such franchise will use the net revenues as determined by such commission to discharge the original secured debt, together with all interest, costs, and other charges which the commission shall determine shall be paid.