Bonds issued under the provisions of this chapter, and the income therefrom, shall be exempt from any taxes, except inheritance, estate, and transfer taxes.
40-57-14. Covenants that may be inserted in ordinance or resolution authorizing bonds. 1. Any ordinance or resolution authorizing the issuance of bonds under this chapter to finance, in whole or in part, the cost of any project may contain covenants, notwithstanding that the covenants may limit the exercise of powers conferred by this chapter, as to: a. The rents or payments to be charged with respect to the project. b. The use and disposition of the revenues of the projects. c. The creation and maintenance of sinking funds and the regulation, use, and disposition thereof. d. The creation and maintenance of funds to provide for maintaining the project and replacement of those properties that are subject to depreciation. e. The purpose, or purposes, to which the proceeds of this sale of bonds may be applied and the use and disposition of the proceeds. f. The nature of mortgages or other encumbrances on the project made in favor of the holder of the bonds, or a trustee therefor. g. The events of default and the rights and liabilities arising thereon and the terms and conditions upon which the holders of bonds issued under this chapter may bring any suit or action on the bonds or on any coupons thereof. h. The issuance of other or additional bonds or instruments payable from or constituting a charge against the revenue of the project. i. The insurance to be carried upon the project and the use and disposition of insurance moneys. j. The keeping of books of account and the inspection and audit thereof. k. The terms and conditions upon which the bonds become or may be declared due before maturity and the terms and conditions upon which the declaration and its consequences may be waived. l. The rights, liabilities, powers, and duties arising upon the breach by the municipality of any covenants, conditions, or obligations. m. The vesting in a trustee of the rights to enforce any covenants made to secure, to pay, or in relation to, the bonds and the powers and duties of the trustee and the limitation of liabilities thereof. n. The terms and conditions upon which the holder of the bonds, or the holders of any proportion or percentage of them, may enforce any covenants made under this chapter or any duties imposed thereby. o. A procedure by which the terms of any ordinance or resolution authorizing bonds or of any other contract with bondholders, including an indenture of trust or similar instrument, may be amended or abrogated, and the amount of bonds the holders of which must consent thereto, and the manner in which consent may be given. p. The subordination of the security of any bonds issued and the payment of principal and interest thereof, to the extent deemed feasible and desirable by the governing body, to other bonds or obligations of a municipality issued to finance
the project or that may be outstanding when the bonds thus subordinated are issued and delivered. 2. Nothing in this chapter authorizes any municipality to do anything or for any purpose that would result in the creation or incurring of a debt or indebtedness or the issuance of any instrument that would constitute a bond or debt within the meaning of any provisions, limitation, or restriction of the Constitution of North Dakota relating to the creation or incurring of a debt or indebtedness or the issuance of an instrument constituting a bond or debt.
40-57-15. Liability of municipality for bonds - Taxing power prohibited - Bond not a lien. Revenue bonds issued under this chapter shall not be payable from nor charged upon any funds other than the revenue pledged to the payment thereof, nor shall the municipality issuing the same be subject to any liability thereon. No holder or holders of any such bonds shall ever have the right to compel any exercise of the taxing power of the municipality to pay any such bonds or the interest thereon, nor to enforce payment thereon against any property of the municipality except those projects, or portions thereof, mortgaged or otherwise encumbered under the provisions and for the purpose of this chapter. Such bonds shall not constitute a charge, lien, nor encumbrance, legal or equitable, upon any property of the municipality, except those projects, or portions thereof, mortgaged or otherwise encumbered under the provisions and for the purposes of this chapter. Each bond under this chapter shall recite in substance that the bond, including interest thereon, is payable solely from the revenue pledged to the payment thereof, except that such bond may be secured by a mortgage or other encumbrance on the project, or portion thereof, as authorized in this chapter, and that the bond does not constitute a debt of the municipality within the meaning of any constitutional or statutory limitation.